Easy Business to Execution for MSMEs
The lesser digital penetration of MSMEs is due to the complex Good and Services Tax (GST) compliance requirements that are needed to perform the transition from offline to online selling platforms mentioned by MSME (Federation of Indian Micro and Small & Medium Enterprises (FISME). There are only 10% of India’s small businesses are being sold online, FISME stated that they have requested the government for the hardships needed to ease the GST system, rationalize rates, and harmonize GST thresholds between offline and online sellers.
The online businesses are needed to enroll beneath the GST system whatever be the turnover even for offline sellers, the same applied to the businesses whose turnover is more than Rs 40 lakhs.
MSMEs with digitalization pose a capability to rise twice similar to the speed of offline companions. The MSMEs should be motivated to sell their products through online e-commerce platforms.
Because of the tough and mandatory GST needs nearly 5 cr MSMEs are not able to sell online and those who operate via online platforms are loaded with time taking periodical compliances such as enrollment and furnishing the monthly returns, which subsequently disallow them from enrolling beneath GSTN, the association sees quoting market intelligence and secondary research.
Confederation of All India Traders (CAIT) had also cast a survey on GST compliance recording the answers of 630 traders. 72% of respondents wants that e-commerce is an essential channel for business, and 66% specified that GST enrollment is a burden. Also, 94% of respondents mentioned that e-commerce companies are ending their business by their monopolistic terms and flouting policies and 89% opined that e-commerce schemes and compliance are needed for a correct e-commerce business.
