CHENNAI: The Forum for Internet Retailers, Sellers & Traders (FIRST) India, a division of India Small and Medium Enterprises (SME) Forum, have said many potential sellers looking to start business in the state are encountering significant obstacles in obtaining GST registration.
In a representation to principal chief commissioner of Central GST and Central Excise of TN and Puducherry, the forum highlighted the issues faced by online MSMEs seeking respite in TN regarding GST registration. FIRST represents enterprises based in India, which are in the business of wholesale and retail selling of goods and services, both offline as well as online, to consumers.
The process, meant to facilitate ease of doing business, has become cumbersome due to incorrect interpretations and stringent requirements from the registration authorities in the state, a release said.
The representation said sellers applying for registration are being subjected to scrutiny and unnecessary requests for clarification on trivial matters, including queries regarding the use of shared spaces for business operations, the presence of the applicant at their desk on all working days, and the justification for choosing Tamil Nadu as the state of registration despite having a presence in other states.
“The notices received by our members highlight the absurdity of some of these requests. The lack of understanding and adherence to GST guidelines by the authorities is causing unwarranted hardships for sellers seeking business opportunities in state,” the release said.
This situation not only deters sellers from entering the Tamil Nadu market but also results in revenue loss for the state. Sellers are willing to comply with regulations, but the enforcement of arbitrary rules is hindering their ability to conduct business effectively, the release added.
‘Revenue loss for Tamil Nadu’
The process, meant to facilitate ease of doing business, has become cumbersome due to incorrect interpretations and stringent requirements from authorities. The situation not only deters sellers from entering TN market but also results in revenue loss for TN, a release said.