MSMEs benefit from GST registration by gaining access to credit and business loans, according to a notification from the Goods and Services Tax Department.
In the Government of India, the Ministry of Micro, Small, and Medium Enterprises (MSMEs) holds the highest authority in formulating and administering rules, regulations, and legislation for micro, small, and medium enterprises.
The GST Portal has the authorization to share information with an entity called “Account Aggregator” upon receiving consent from registered individuals or taxpayers.
Account Aggregator (AA) refers to a firm regulated by the RBI, holding an NBFC-AA license, which securely and digitally facilitates the access and sharing of information among financial institutions within the AA network. Sharing of information requires the explicit permission of the individual.
As a result of this initiative, MSMEs can procure credit or business loans through their GST registration.
The GST registration process can assist SMEs in obtaining credit/business loans
