GST registration helping MSMEs to get credit/business loans

The Goods and Services Tax Department notified that GST registration is helping MSMEs to get credit/business loans.

The Ministry of Micro, Small, and Medium Enterprises (MSMEs) is a ministry in the Government of India. It is India’s apex executive body for the formulation and administration of rules, regulations, and legislation pertaining to micro, small, and medium enterprises.

“Account Aggregator” has been designated as one of the systems with whom GST Portal may share information based on the registered person/ taxpayer’s consent.

An Account Aggregator (AA) is a sort of RBI-regulated firm (with an NBFC-AA license) that assists individuals in securely and digitally accessing and sharing information from one financial institution to any other regulated financial institution in the AA network. Information cannot be shared without the individual’s permission.

This will help MSMEs to obtain credit or a business loan based on their GST registration.