Micro, small and medium enterprises demand separate GST Slab

The Union government has been requested by the Federation of Coimbatore Industrial Associations (FOCIA) to create a separate GST slab for the goods produced by micro, small, and medium enterprises (MSME), as these businesses are unable to compete with the large corporations.

Twenty MSME organisations met on Sunday to discuss the issues they were facing.

J. James, one of the organisers, claimed that since the implementation of the GST, MSMEs have been having trouble. We were unable to compete with the major manufacturers since our GST slabs were the same. As a result, the MSME sector need its own GST slabs.

The MSMEs sector, like the agriculture sector, should receive loans at discounted rates, he continued.

“A reduction in loan interest rates would increase the profit margin.”

The state government’s most recent increase in the price of electricity has also made things difficult for the industry. He pleaded with the administration to do away with the peak power usage model and reverse the increase in fixed fees.