These industry leaders call for simplified procedures and improved communication between MSMEs and GST authorities to ensure smoother GST registration.
Challenges in GST Registration for MSMEs in TN: The Federation of Indian Micro and Small & Medium Enterprises (FISME) and the Tamil Nadu Chamber of Commerce have raised significant concerns about the hurdles faced by online micro, small, and medium enterprises (MSMEs) in Tamil Nadu regarding GST registration.
In a recent statement, these industry bodies highlighted the numerous obstacles MSMEs encounter in securing GST registration. They pointed out that bureaucratic inefficiencies and stringent, often misinterpreted requirements from state authorities present substantial challenges for sellers. These hurdles include excessive scrutiny of shared business spaces, the need for constant workstation presence, and the requirement to justify Tamil Nadu as their primary state of registration.
Tamil Nadu hosts the third-largest number of MSMEs in India, contributing to 8% of the country’s total with five million enterprises. Online sellers have expressed concerns over the cancellation of licenses due to the need for physical presence, citing a significant gap between GST guidelines and their practical implementation by authorities, which creates difficulties for legitimate sellers.
Manish Singla, CEO and Founder of Healthy18, shared his frustrations, stating, “Despite our earnest efforts to obtain GST registration in Tamil Nadu, we’ve faced repeated rejections, hindering our ability to serve the region. The short notice and our inability for physical presence further exacerbate the challenge. It’s disheartening as India strives to promote MSMEs, yet barriers persist.”
Anil Bhardwaj, Secretary General of FISME, emphasized that while GST was designed to enhance transparency and simplicity, challenges remain, especially for emerging business models like e-commerce. “Clear and concise guidelines are essential, along with increased awareness among GST officers. Meaningful dialogue between MSME bodies and the GST department is vital to finding common ground. It’s crucial to emphasize that the solution lies not in tax avoidance but in streamlining processes for easier compliance. Simplifying the process will make compliance more manageable for businesses,” he stated.
These industry leaders call for simplified procedures and improved communication between MSMEs and GST authorities to ensure smoother registration and compliance processes for businesses in Tamil Nadu.
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