Budget proposal of linking TReDS with GSTN to enhance usability and credibility of TReDS platform: Expert

New Delhi, Feb 2 (KNN) Commenting on the proposal made by Finance Minister Arun Jaitley to link TReDS with GSTN, experts have expressed that the move once implemented is to prove to be positive for the functioning of TReDS.

Kalyan Basu, MD & CEO, Invoicemart (A.Treds Ltd. - A joint venture between Axis Bank Ltd. and mjunction services ltd.) said that Linking of TReDS with GSTN is a major move which will enhance usability and credibility of TReDs platforms.

Directing Public Sector Banks and Undertakings to be on TReDs platform will further help in increasing credit availability.

The government has proposed to on-board public sector banks and corporates on Trade Electronic Receivable Discounting System (TReDS) platform and link this with GSTN. TReDS is an electronic platform for financing of trade receivables of MSMEs.

Commenting over the proposal, Anil Bhardwaj, Secretary General of the Federation of Indian Micro and Small & Medium Enterprises (FISME) said, “If our standing that GSTN data could be used to verify transaction is correct, TReDS could be hugely successful.”

With regard to the government’s announcement of encouraging PSUs to engage with MSMEs over the TReDS, Dr. Yerram Raju, Economist, said that for TReDS to work in an efficient manner, the government should come up with dedicated framework mandating the government departments and PSUs to register themselves on the portal. (KNN/ DA)