FISME and Tamil Nadu Chamber of Commerce Highlight Challenges faced by MSMEs in obtaining GST Registration

FISME and Tamil Nadu Chamber of Commerce have raised concerns on Thursday regarding the difficulties faced by micro, small, and medium enterprises (MSMEs) and sellers in Tamil Nadu in obtaining Registration under the Goods and Services Tax (GST) regime.

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.

Tamil Nadu home to the country third largest number of MSMEs comprising 8% of the total five million enterprises is facing significant challenges, it said.

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.

Secretary General of FISME Anil Bhardwaj, said the persisting challenges despite GST aim of transparency and simplicity. He emphasized the need for clear guidelines and increased awareness among GST officers. Bhardwaj stressed the importance of dialogue between MSME bodies and the GST department to find common ground, highlighting that the solution lies in streamlining processes for easier compliance, rather than tax avoidance.