MSMEs pursue GST reforms with candidates

“The rate was initially 18% and after a lot of representations, it was reduced to 12%. It should be either 5% or nil,” R. Ramamurthy, former president of the Coimbatore District Small Industries Association, said.

While introducing GST, the Union government said it would reduce the rates when the GST revenue crossed ₹1 lakh crore. However, there is no indication of such a move, V. Thirugnanam, president of the Association, said.

B. Kandavel, organising secretary of the Federation of Tamil Nadu Powerlooms Associations, said they had submitted a memorandum to the BJP on the GST refund pending for looms weaving viscose fabric. Almost 2,000 units in the western districts of Tamil Nadu have to get nearly ₹1,200 crore refund. Close to 500 units have closed down business because of the pending refund. Mr. Kandavel said that some of the larger textile industries in northern India have gone to the court over this issue.

In Ludhiana, auto component units pay 28% tax for some of the components. For those supplying to the spares market, the cost goes up as they cannot take input tax credit and they need to compete with units that are not registered with GST. So there is no transparency in business and many units face liquidity issues. This has been represented to the local candidates fielded by parties, Upkar Singh Ahuja, president, Chamber of Industrial and Commercial Undertakings, said.

K.E. Raghunanthan, chairman of the Association of Indian Entrepreneurs, said political parties should give priority to MSMEs in their election manifestos.