Recession scare: Industry seeks interim GST relief in Ludhiana

LUDHIANA: Facing a tough time due to the recession, city businessmen have now demanded a temporary subsidy in the Goods and Services Tax (GST) from the government. They’re asking that this subsidy be extended for one year at least, and it could be removed once the businesses normalise. The industrialists have also sent a memorandum to the chief minister on Sunday in this regard.
Harish Kairpal, president of Ludhiana MSME (Micro, Small and Medium Enterprises) Association informed, “The industry, especially the garment sector, is in a very serious crisis right now due to huge cancellation of orders on account of less demand of garments on retail counters. As per the insights received by us from different industry sources, the situation will remain grim in coming months as well. Therefore, it is the need of the hour that the both state and central governments support us in surviving this critical time. We have sent a memorandum to CM Bhagwant Mann, urging him to consider our request to subsidise the GST applicable on garment industry for at least one year.”
Narinder Bhamra, president of Fastener Manufacturers Association of India, also claims that this reduction would help the industry deal with the problems. He said: “Industry has been gripped in the clutches of severe recession, due to which the MSME sector is facing unprecedented hardships. Temporarily subsidising the GST is one quick solution which can give huge reprieve to the ailing industry.”
They say keeping the GST to a maximum of 5% for at least a year would be helpful.
Inderjit Singh Navyug, ex president of United Cycle and Manufacturers Association said, “In wake of the situation, the Union and state governments should immediately slash the rates of GST in case of goods where the rate is above 5%. We do not have any problems if the rates are revised back to existing levels after one year, because it is expected that the recession in bicycle industry will be over by October 2023.”