How e-commerce platforms can help Micro small medium enterprise in easing the Goods and Services tax compliance issue? Discuss (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
The government is taking steps to simplify the GST filing process to address compliance concerns of MSMEs.
Challenges MSMEs face
· To further ease compliances for MSMEs, the GST Council approved implementation of a new return filing system.
· Educating taxpayers on this relatively new law is one of the challenges due to its ever-evolving nature.
· Businesses that deal with multiple vendors have to ensure that every time they get an invoice, their GST number is accurately printed on it. When this does not happen, these invoices become non-compliant.
· Dealing with multiple vendors adds to the hassle of handling physical invoices and different formats.
e-commerce platforms
· E-commerce platforms carry lakhs of products with a GST-compliance badge and are equipped with filters that help MSME buyers connect with only registered GST vendors.
· Invoices on B2B platforms are digital and standardised, making it easier to file for ITC to save more on business purchases.
· E-commerce platforms are also integrated with data analytics to help understand spending and ITC details to plan budgets better.
· MSMEs can leverage the same e-commerce systems and have tax-compliant invoices generated and get access to periodic reports.
