The Tamil Nadu Association of Cottage and Tiny Enterprises has expressed displeasure over the views of the Bharatiya Janata Party candidate in Coimbatore C.P. Radhakrishnan in a daily that micro and small-scale industries were hit by GST because they did business without bill.
President of the Association J. James said in a press release that the State Government said in the Assembly recently that 50,000 MSMEs in the State were closed down. The micro and small-scale units that do job work for public and private sector industries wait for three to six months to get payment. But, the units need to pay the GST every month and if they fail to do so, the penalty is ₹50 a day.
Before the implementation of GST, there was no tax on job work. However, with GST the job working units need to pay 18 %. The micro units have been submitting their demands to several Central Government officials and ministers. In such a situation, the views of the BJP candidate hurts the industry, he said.
According to Mr. Radhakrishnan, he only said that the GST has regularised businesses and has helped remove check posts. Talking to The Hindu, he said several grievances of the industry on GST were addressed by the Government and the one pending issue is 18 % tax on job working units. This will also be sorted out when the BJP returns to power again.