FISME Address Challenges faced by MSME for GST Registration in TN

FISME - MSME -GST - GST Registration - Tamil Nadu - Federation of Indian Micro and Small & Medium Enterprises - micro

In a recent case, the Federation of Indian Micro and Small & Medium Enterprises ( FISME ) and Tamil Nadu Chamber of Commerce show the issues faced by online micro, small and medium enterprises ( MSMEs ) and sellers in Tamil Nadu ( TN ) with regards to the Goods and Services Tax ( GST ) registration.

According to the industry bodies, many MSMEs in the state are encountering obstacles in obtaining GST registration. They pointed out bureaucratic inefficiencies and strict, often misinterpreted, requirements from state authorities as major hurdles for sellers. These challenges include excessive scrutiny regarding shared business spaces, the need for constant workstation presence, and the requirement to justify Tamil Nadu as their primary state of registration.

It cited that Tamil Nadu is the country’s largest number of MSMEs with an 8% share amounting to 5 million enterprises. Online sellers over license cancellations raise concerns amid requirements for physical presence, adding that there is a noteworthy gap between GST procedures and their practical undertaking by authorities, directing to challenges for legitimate sellers.

The challenge has risen as of the short notice and our inability to the physically present. It is not good to learn that India aims to promote MSMEs, however barriers continue. The GST department is essential to finding a common basis consequential dialogue between MSME bodies. It was important to underscore that the solution is not in avoiding the tax but in easing the process for simpler compliance. Businesses shall experience more manageable compliance on easing the process.

Online sellers are expressing concerns over license cancellations due to requirements for physical presence. They highlight a notable gap between GST guidelines and their practical enforcement, posing obstacles for legitimate sellers.

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