Call for Phased Implementation: India SME Forum's Appeal on GST Invoice Management

The India SME Forum has called for the phased implementation of the Invoice Management System (IMS) under the GST framework, citing the financial and operational burdens on Micro, Small, and Medium Enterprises (MSMEs). They emphasize a structured transition to prevent hindrances to business growth due to compliance challenges.

The India SME Forum (ISF) has urged the government to review the timeline for implementing the Invoice Management System (IMS) under the GST framework, highlighting significant challenges for MSMEs. They advocate for a phased transition to prevent undue financial hardship.

Since GST's 2017 rollout, it has reformed India's economy, enhancing transparency and tax compliance. The IMS extension aims at real-time invoice reconciliation, but it's proving problematic for small businesses who struggle with the current rapid rollout, impacting cash flows.

Vinod Kumar, President of ISF, highlighted the importance of a careful transition, citing the need for government support in digital integration and tax compliance to avoid hindering MSME growth. With substantial adoption challenges, a gradual implementation is seen as crucial to safeguarding business operations.

(With inputs from agencies.)