The Union government has been requested by the Federation of Coimbatore Industrial Associations (FOCIA) to create a distinct GST slab for the goods produced by micro, small, and medium-sized enterprises (MSMEs), as these businesses are unable to compete with large corporations.
On Sunday, representatives from 20 MSME organizations gathered to address issues they were facing.
MSMEs have been having trouble, according to J James, one of the event’s organizers, ever since the introduction of the GST. Due to the fact that our GST slabs are the same, we are unable to compete with the large manufacturers. Thus, the MSME sector needs its own GST slabs.
He continued by saying that, similar to the agricultural sector, loans for MSMEs should be offered at discounted rates.
A decrease in loan interest rates would increase the profit margin.
Important: GST for MSMEs: Benefits, Business Management & Govt Actions
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.
