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E-commerce Forum Raises Alarm Over 'Cumbersome' GST Norms Impeding Business In Tamil Nadu

Updated: May 09, 2024 03:30:37pm

E-commerce Forum Raises Alarm Over 'Cumbersome' GST Norms Impeding Business In Tamil Nadu

Chennai, May 9 (KNN) The Forum for Internet Retailers, Sellers & Traders (FIRST) India, a division of the India Small and Medium Enterprises (SME) Forum, has raised concerns over the challenges faced by potential online sellers seeking to commence operations in Tamil Nadu.

In a representation to the Principal Chief Commissioner of Central GST and Central Excise of Tamil Nadu and Puducherry, the organisation highlighted the obstacles encountered by online Micro, Small, and Medium Enterprises (MSMEs) in obtaining Goods and Services Tax (GST) registration within the state.

According to FIRST India, which represents enterprises engaged in wholesale and retail trade of goods and services, both offline and online, the GST registration process, intended to facilitate ease of doing business, has become unnecessarily cumbersome due to stringent requirements and incorrect interpretations by the registration authorities in Tamil Nadu.

The representation alleges that applicants for GST registration are subjected to excessive scrutiny and unnecessary clarifications on trivial matters, such as inquiries regarding the use of shared workspaces, the applicant's presence at their desk on all working days, and the justification for choosing Tamil Nadu as the state of registration despite having operations in other states.

In a statement, FIRST India expressed concerns over the absurdity of some of these requests, attributing them to a lack of understanding and adherence to GST guidelines by the authorities. The organisation claimed that these unwarranted hardships are deterring sellers from entering the Tamil Nadu market, ultimately resulting in revenue loss for the state.

While acknowledging the willingness of sellers to comply with regulations, FIRST India emphasised that the enforcement of arbitrary rules is hindering their ability to conduct business effectively within Tamil Nadu. The trade group called for a streamlined and transparent process that aligns with the intended goal of facilitating ease of doing business.

(KNN Bureau)


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