Daijiworld Media Network - New Delhi

New Delhi, Oct 9: Industry stakeholders on Friday welcomed the latest GST reforms, saying the measures would strengthen confidence in the tax regime and improve the ease of doing business, particularly for micro, small and medium enterprises (MSMEs).

Abhishek Kumar, President of the Entrepreneurs Association of India (EAI), said the decision to reduce penalties addressed a long-standing demand of the industry and would make the Goods and Services Tax (GST) framework more business-friendly.

“Lowering penalties has been a long-pending demand to ensure that GST is not seen as a punitive mechanism but as an inclusive framework that supports businesses. This is a significant step towards building confidence in the GST system and the overall business environment,” he said.

Kumar also welcomed the move to expedite GST registration for small businesses operating through e-commerce platforms, saying it would provide a major boost to entrepreneurs.

He said simplifying the registration process and allowing businesses to register without having to maintain offices in multiple states would ease compliance and help enterprises expand their operations.

Commenting on the Centre's decision to establish a Rs 10,000 crore SME Growth Fund (SGF), Kumar said financial assistance for MSMEs should reach businesses in Tier-3 and Tier-4 cities instead of remaining concentrated in metropolitan areas.

“Given the size and diversity of India, assistance for MSMEs should not remain limited to metro cities. The new fund will help smaller enterprises scale up, expand operations and achieve export-oriented growth. Such funding support has been a long-standing requirement, and I would like to thank the Prime Minister for approving this initiative,” he said.

Ravi Sood, President of the Badli Industrial Estate Association, also welcomed the measures announced by the GST Council, stating that they would encourage industrial growth, particularly among MSMEs.

“The steps taken by the GST Council to support industries, particularly MSMEs, are commendable. We hope the government continues with such reforms, leading to greater liberalisation and enhancing confidence among both consumers and traders,” he said.

Sood said Indian businesses had significant growth potential and could emerge as global leaders with continued policy support.

“Our entrepreneurs have immense capabilities and the potential to become global leaders. If the government continues to back them through such measures, achieving the vision of a developed India well before 2047 will become a realistic goal,” he added.