Quick Summary
With the Union Budget 2026-27 approaching, Rajya Sabha MP Sasmit Patra has urged the government to push the next phase ofGST reforms, focusing on simplification, ease of doing business and improved liquidity for small enterprises, particularly those operating across multiple states and on e-commerce platforms. Speaking at GST Samvaad 2.0, Patra said that while GST has matured as a system, compliance complexities continue to strain businesses, especially micro, small and medium enterprises (MSME
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FAQ :
MP Sasmit Patra is urging the government to implement the next phase of GST reforms, focusing on simplification, ease of doing business, and improved liquidity for MSMEs, ahead of the Union Budget 2026-27.
MSMEs face challenges such as multiple GST registrations for multi-state operations, parallel audits, and working capital strain due to unutilised input tax credits, particularly in sectors with inverted duty structures.
Inverted duty structures occur when tax rates on inputs are higher than on outputs, leading to a continuous accumulation of input tax credits. This ties up cash flow, restricting the working capital needed by MSMEs for daily operations and expansion.
E-commerce sellers and micro-entrepreneurs continue to encounter practical difficulties, including reliance on physical documentation despite digital alternatives being available.
MSMEs contribute significantly to India's GDP and employment. Compliance-friendly GST reforms are critical for their operational efficiency, liquidity, and overall inclusive economic growth.
MP Patra has called for simplifications including easier registrations, harmonised audits, and faster resolution of accumulated input tax credits to genuinely support MSME growth.
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