MSMEs flag Concerns on GST Registration challenges in Tamil Nadu:

MSMEs flag Concerns on GST Registration challenges in Tamil Nadu The Federation of Indian Micro, Small, and Medium Enterprises (FISME) and the Tamil Nadu Chamber of Commerce on Thursday highlighted the difficulties that  micro, small, and medium firms (MSMEs) and sellers in Tamil Nadu encounter in obtaining Goods and Services Tax (GST) licenses. Many MSMEs in the state are struggling to secure GST registration, according to industry bodies. "Sellers face obstacles due to bureaucratic inefficiency and complicated, often misconstrued, state-imposed rules. These include rigorous surveillance of shared company facilities, the need for constant workstation presence, and the requirement to defend Tamil Nadu as their principal state of registration," it stated. Tamil Nadu has the third-largest number of MSMEs in the country, accounting for 8% of the total, or 5 million firms, according to the report. Online retailers expressed concern about licence cancellations in the face of physical presence requirements, as well as a considerable gap between GST guidelines and their practical application by authorities, posing obstacles for legal vendors. It faced repeated refusals that limited its capacity to serve the region, despite serious efforts to obtain GST registration in Tamil Nadu. The issue has increased due to the short notice and the inability to be physically present. It is unfortunate that India intends to boost MSMEs when restrictions remain in place. To establish a common ground, ongoing discussion between MSME organizations and the GST department is required. It is critical to emphasize that the solution is not to evade the tax but rather to simplify the process of compliance. Businesses will find compliance easier to manage.