‘Consider one home-state principal place of biz registration for MSMEs’

Kolkata: With the Micro, Medium and Small Enterprises (MSMEs) facing challenges in the e-commerce sector under the current GST regime where registration procedure varies from state to state, the sellers have appealed to the West Bengal government to consider the need of one home state Principal Place of Business (PPOB) registration with other states for ease of doing business.

At an event hosted by the Bengal Chamber of Commerce and Industry (BCC&I), industry experts deliberated on the challenges faced by MSMEs in the e-commerce sector under the current GST regime and deliberated possibilities to enhance ease of doing business. Sellers highlighted that many MSMEs find the registration procedure rigorous as it varies from state to state, with numerous applications being denied for reasons that at times appear unclear.

They also highlighted that the current PPOB registration regulations, which mandates a brick and mortar set up to accommodate business operations, compulsory employee presence, specification on space dimension impose financial and operational burdens on MSMEs in an increasingly digital-oriented business environment.

Sellers are also facing issues with biometric requirements, since they need to be physically present for verification, complicating remote or digital business operations.

The sellers urged support from West Bengal in inclining the need of one home state PPOB registration with other states to provision Ease of Doing Business.

Devi Prasad Karnam, Commissioner, State Tax, West Bengal, said: “We have adopted a pragmatic approach to business registration that aligns with the realities of modern e-commerce. Our policy understands shared space and coupled with exercising due caution, we endeavour to foster a more conducive environment for MSMEs and small sellers. We hope to see ease in compliance and more acceptance for MSMEs in the times to come across states.”

Debashis Bandyopadhyay, IAS, special secretary, department of MSME & Textiles, said: “West Bengal stands at the forefront of India’s MSME landscape, hosting nearly 89 lakh units across manufacturing, trading and other sectors. The state boasts over 29 lakh MSME entrepreneurs, constituting 32.7 per cent of the nation’s MSME enterprises and providing employment to 1.36 crore individuals, prominently in manufacturing. The state government has catalyzed growth with initiatives like the expansion of the textile sector, easing monitored yet safe entrance norms to the state which showcases the state’s commitment towards supporting local industries and fostering MSME growth through strategic policies.”