The India SME Forum (ISF) has urged the government to reconsider the timeline for implementing the Invoice Management System (IMS) under the GST framework, citing operational and financial challenges for Micro, Small, and Medium Enterprises (MSMEs).
The main problem is that the Invoice Management System (IMS) under the GST framework is being rolled out too quickly, creating operational and financial challenges for Micro, Small, and Medium Enterprises (MSMEs).
What are the problems faced by MSMEs
Short Compliance Window – Businesses must reconcile invoices within a tight deadline before GSTR-2B generation, making it difficult to manage transactions smoothly.
High Compliance Costs – MSMEs may need to spend ₹1.5 lakh per year on software and infrastructure upgrades to meet IMS requirements.
Infrastructure and Software Challenges – Many small businesses lack the necessary digital infrastructure and face technical difficulties in integrating IMS.
Risk of Business Disruptions – The rapid implementation could lead to financial strain and prevents MSME growth instead of supporting it.
What are the demands of SME Forum
The India SME Forum (ISF) is demanding a phased implementation of the Invoice Management System (IMS) under the GST framework instead of an immediate rollout.
Commenting on the IMS rollout, Vinod Kumar, President, India SME Forum, said, “MSMEs appreciate the government’s commitment towards leveraging technology for tax compliance. While the objective of IMS is well-intended, the rapid rollout has left MSMEs struggling with infrastructure limitations, inadequate software readiness, and compliance hurdles.
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