MSMEs fear Rs.1.5 lakh annual burden as India rolls out new GST Invoice Management System
The government is all set to roll out the newly proposed and designed Invoice Management System (IMS) under the Goods and Services Tax (GST) framework, but the industry, especially the MSME (Micro, Small and Medium Enterprises), doesn’t seem to be excited enough.
Rather, they fear that the new system would mean a huge compliance burden, and this could lead to an additional cost for them, making it unaffordable.
According to the India SME Forum (ISF), IMS could mean an additional Rs.1.5 Lakhs per year as Cost of Compliance only due to the adoption of the IMS system.
India SME Forum (ISF), which claims to be the country’s largest non-governmental organisation for small and medium enterprises, has urged the government to reconsider the timeline for the implementation of IMS under the GST framework.
Noting the significant operational and financial challenges faced by MSMEs in integrating IMS, the forum is calling for a phased implementation for transition to ensure small businesses can adapt without financial or operational distress.
