Simplified GST registration traps MSMEs on growth

The Indian government made it easier for small businesses to register for GST, a tax on goods and services, starting in November.

This new process lets businesses register quickly and with fewer documents.

However, if a business's taxable sales go over ₹2.5 lakh in a month, the GST website blocks them from filing their tax returns.

This is a problem because businesses need to file these returns to switch to a regular registration.

Some businesses are stuck and can't grow because of this rule.

Experts suggest the government should warn businesses when they're close to the limit instead of blocking their returns.

Until this is fixed, businesses have to choose between not taking big orders or facing penalties for not filing taxes on time.