Lok Sabha Elections 2024: Need For GST Reforms To Cater MSMEs

The Goods and Services Tax (GST) regime, a pivotal reform in the nation's taxation structure, has evolved over the last seven years. Nonetheless, there still lies some room for tailored adjustments in the GST legislation to accommodate the distinctive circumstances encountered by the industry, specifically the Micro, Small, and Medium Enterprises (MSMEs). Here, it may be pertinent to note that this sector contributes around 30% to the country's GDP, with exports taking up around 46% of the share¹.

A few propositions outlining the legal reforms aimed at refining the tax administration, which in turn would enhance the ease of doing business, are outlined below:

1. The GST registration process should be streamlined to minimize the gestation period. While the UDYAM portal is integrated with the GST portal to extract turnover details, a reverse integration of the GST portal with the MSME portal would offer a seamless registration experience. Additionally, introducing a