Anushruti Singh
MSMEs, whether organised or unorganised makes an integral part of the economic ecosystem. Currently contributing 29 per cent to India’s GDP, government vision is to increase the MSME contribution to 50 per cent for the Indian economy to scale the $5 trillion mark. While, at it, the government reforms such as GST have replaced a slew of indirect taxes and aimed to reshape the Indian economy by reducing tax evasion and simplify tax compliance.
Since, the inception of Goods and Services Tax (GST), the major challenge, which has been highlighted by the MSME community, is the compliance of the reform and the complications attached with filing returns. Considering the difficulties faced by trade and industry in filing of returns, government has even introduce several measures to ease the process, however, MSME taxpayers still find it complicated.
The industry experts highlighted this issue as the major concern and setback for the growth of the small businesses and their operations. Talking from the industry perspective, Anil Bhardwaj —Secretary-General, FISME, says, “Indian economy is witnessing a dichotomy. GDP is at the lowest level and the share market is at the historical peak. Keeping in mind the two major pain points which MSMEs counter, at least at the current level are the problems they face in GST filing and maintaining their GST accounts and second with regards to the receivables.” He states at the SME round table conference facilitated by Moneycontrol, laying impetus on how to help MSME bridge the gap between the MSME businesses and stakeholders.
However, compliance being the hiccup the government is continuously bringing out the measures to ease the complications and to rectify the faulty procedures. In a recent development, taking the note of difficulties and concerns expressed by the taxpayers regarding filing of GSTR-3B and other returns, the government came out with immediate measure. Presently the last date of filing GSTR-3B returns for every taxpayer is 20th of every month, but now GST taxpayers can file their GSTR-3B returns in a staggered manner. The dates have been divided accordingly on the basis of annual turnover of the taxpayers.
While in another observation, compliance of GST filings becomes cumbersome as taxpayers often practice the process on the very last day of the filing. This results into the technical glitches and leads to more complexities in the filing process. This is evident to the fact that on last of filing GSTR-3B returns i.e on 20th January 2020, out of total 65.65 lakh GSTR-3B filed for the tax month of December, 13.30 lakh GSTR-3B returns were filed on last day itself. As per the GST network, the returns filed on the last day were around one-fifth of the total returns despite technical glitches.
Newer technologies, need of the hour
While discussing the compliance issue, the experts in the conference emphasized on to identifying new technologies and innovations which can be adopted by MSME sector to mitigate the complications of GST filings.
Talking about the issue, Ravi Sood, Proprietor —Neeraj Industries stress on the need of digital approach to resolve the issue, “MSMEs really need to go for digitization in a big way with there being immense scope. There is no doubt at this time that non-digitization is not an option anymore. It is imperative that every MSMEs, whatever size they may be, adopt a digital approach.”
To address the complications under GST, digital platforms can help out resolving the issues of the taxpayers such as Easybiz. Launched by Moneycontrol, this online tool called Easybiz is for MSME business owners. The platform ‘Easybiz’ enables a seamless digital integration for SME enterprises that simplifies their business performances. Through this service, small businesses can digitize their business operations. Additionally, they also can file GST through this tool. The tool also has other offering such as:
- Customer data management
- Invoicing and recurring bill function
- Track of GST meets, government notices & MSMEs events
- Update on latest news and videos
- Chats with vertical experts & consultants
The platform is integrated with IRIS GST, one of the GST suvidha providers (GSPs) via single sign-on mechanism. To create the account, users have to access Moneycontrol website and can sign in through multiple modes (email, mobile, Google, FB).
Speaking on the launch, Gaurav Choudhary —Deputy Executive Editor, Editorial and Content from moneycontrol said, “In order for MSMEs to grow business and increase their footprint, MSMEs have to use technology in an efficient way. Easybiz is one such solution which MSME entrepreneurs can use to increase the digital footprint and that is just the beginning because growth has no limits.”
Adding his comments on the solution, Bhardwaj says, “This offering by Moneycontrol has come at the right time as it will solve a lot of issues which MSMEs have to face on day to day basis and I congratulate Moneycontrol on this endeavor and wish them all the success.”
Speaking at the round table conference Amit Singal —Co-Founder & CEO of Startup Buddy, said, “As we all are aware that MSMEs do contribute a lot to the Indian GDP, I personally believe that the new product, which is the Easybiz launched by moneycontrol, is an extremely useful product for them. The key takeaway from today’s discussion is how to help MSME in bridging the gap between the MSME businesses and the lenders etc. and the different statutory bodies so that the product becomes the one-stop solution for them allowing them to focus on their core business.”
Further talking about the Sandeep Kishore Jain —Managing Director, Solo Components, said, “Easybiz is a very good platform for the micro, small and first-time startups and individuals who are doing some kind of business. An added benefit to it is that it will put you in touch with potential lenders and credit rating agencies. It could also help you with your receivables or at least pointing them out to you in time as well as point them out to your buyers. Regular email reminders will ensure that invoices and payments are no longer delayed.”
Going forward, it is essential for businesses to be on some kind of digital platform to ensure timely and effective compliance of the reforms. However, it is necessary for businesses that they should recognize the such digital platforms according to their needs that is best suitable for them.
