BHUBANESWAR : Ahead of the Union Budget 2026-27, Rajya Sabha MP Sasmit Patra has stressed further simplification of the Goods and Services Tax (GST) along with tax measures to strengthen ease-of-doing business, improve liquidity for small enterprises and support sustained economic growth, particularly for entities operating across states and e-commerce platforms.
Speaking at the GST Samvaad 2.0 here, Patra emphasised the need for the next phase of GST reforms to build on trust and system maturity.
“For businesses operating across states, GST compliance continues to involve multiple registrations, parallel audits and working capital pressures arising from accumulated input tax credits, particularly in sectors affected by inverted duty structures where higher taxes on inputs lead to credits remaining unutilised and constrain cash flows needed for day-to-day operations and expansion. E-commerce sellers and micro-entrepreneurs also face practical challenges due to continued reliance on physical documentation, despite the availability of digital alternatives,” Patra said.
He pointed out that stakeholders of small and medium enterprises despite GST 2.0’s rollout last year and ongoing digitisation efforts continue to face complex compliance requirements that affect their operational efficiency and working capital. Given the economic significance of small and medium enterprises, which contribute nearly 30 per cent of GDP and employ over 11 crore people, he said, the policymakers have an opportunity to pursue calibrated, trust-led GST reforms that simplify compliance, improve liquidity and support inclusive growth as the tax framework continues to evolve.
“GST was envisioned as One Nation, One Tax to enable ease-of-doing business, especially for small traders and entrepreneurs. While rate rationalisation and digitisation have improved, the compliance burden continues to be disproportionately high for small sellers. Simplifying registrations, harmonising audits and enabling faster resolution of accumulated credits are essential to ensure GST genuinely supports growth while safeguarding revenue integrity,” the MP said.