Realizing a smart Low Voltage Distribution System (LVDS) is essential to realize a smart grid. Restructuring the existing distribution system into microgrids is one important requirement to achieve a smart LVDS. The realization of microgrids in LVDS can take different shapes in different countries. This article discusses the challenges and practical solutions to realize a smart LVDS for radial distribution grids, which are common in India. The network following a distribution transformer can be distinguished as a microgrid for radial low voltage distribution grids. However, this leads to many operational issues. Therefore, this article envisions replacing the Low Voltage distribution transformers with Solid-State Transformers(SSTs). This will enable the LVDS to control the power exchange between the phases within a microgrid as well as power exchange between different microgrids. The architectural design of a smart home in smart LVDS is outlined to complete the discussion. Various unique features required for smart inverters in a smart home and existing grid codes to make them compatible with smart LVDS are also reviewed.