HomeWhat's TrendingGST Registration Woes: Sellers Struggle in Tamil Nadu, Revenue Loss Looms

GST Registration Woes: Sellers Struggle in Tamil Nadu, Revenue Loss Looms

The Forum for Internet Retailers, Sellers & Traders (FIRST) India, a division of India Small and Medium Enterprises (SME) Forum, has raised concerns over the hurdles faced by potential sellers seeking GST registration in Tamil Nadu.

In a communication addressed to the principal chief commissioner of Central GST and Central Excise of TN and Puducherry, the forum highlighted the challenges encountered by online MSMEs in TN regarding GST registration. FIRST represents enterprises across India engaged in wholesale and retail selling, both offline and online.

The registration process, intended to streamline business operations, has become arduous due to misinterpretations and rigorous requirements imposed by the registration authorities in the state, according to a statement.

Sellers applying for registration find themselves subjected to excessive scrutiny and trivial queries, including those concerning the utilisation of shared spaces for business activities, the consistent presence of the applicant at their workstation, and explanations for selecting Tamil Nadu as the registration state despite having operations elsewhere.

‘The notices received by our members underscore the irrationality of some of these demands. The lack of comprehension and adherence to GST guidelines by the authorities is inflicting undue hardships on sellers seeking business opportunities in the state,’ the statement remarked.

This predicament not only dissuades sellers from venturing into the Tamil Nadu market but also translates into revenue losses for the state. Sellers express readiness to comply with regulations, but the imposition of arbitrary rules impedes their ability to engage in business effectively, the statement further noted.

The forum emphasised that the current scenario not only hampers the ease of doing business but also undermines Tamil Nadu’s revenue potential. They call for a reevaluation of the registration process to foster a more conducive environment for entrepreneurs looking to establish themselves in the state’s market.

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Akash G Varadaraj
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