FISME Calls for GST Reforms to Reduce MSME Compliance Burden

The Federation of Indian Micro and Small & Medium Enterprises (FISME) has suggested some alterations to the GST regime in order to make the entire process of compliance easier for small businesses. The industry group is of the opinion that the GST structure could be made more convenient by streamlining the process to minimize the documentation and cost involved and ensure certainty for the taxpayers.

One of the most important recommendations made by FISME is to have a provision of safe harbor for ITC in the GST regime. This can protect companies that adopt reasonable compliance procedures from any dispute regarding their ITC claims. The MSME sector which operates with very little financial and administrative resources can benefit from such a provision.

FISME has also asked for faster refunding of GST, especially for those who are engaged in export business and are in need of working capital. The delay in refunding creates problems in cash flow for small organizations, and it becomes difficult for them to handle their expenditure and make payments to suppliers.

One more important suggestion is to streamline the process of compliance of GST by centralizing it. MSMEs usually spend lots of time in comprehending the norms, filing returns and handling other compliance issues. This will help them in focusing more on their core business activities.

These changes will make GST easier to implement as well as more efficient and transparent. The MSMEs of India, that contribute significantly to the country in terms of job creation, production, and export, can get a boost to their productivity through simplification of the GST regime. This will not only help smaller businesses but also create efficiency and transparency for the economy.