Measures for defending the MSME sector from suffering more due to high GST rate – The Consumer Price Index (CPI) is in the midst of the preparation process of a memorandum on the GST for the MSME sector, which is under crisis due to high tax rates.
In the scenario when various industrialists and sectors are witnessing hardships and shutting down their businesses due to high GST rates, K Subbarayan, who is the former Chief Economic Adviser to the Government of India (CEA) has turned his gears towards the MSME (Micro, Small and Medium Enterprises) sector which is under high peril of GST.
According to him, the GST taxation system has brought misfortune for almost every trader and businessmen because of its high rate tax brackets. In India, under the 4 tax rate slabs, MSME sector has undergone decline and suffered a lot, especially the sectors of Tamil Nadu where the high rates resulted in the cessation of many industries.
The last two years have been years of adversity for the state of Tamil Nadu when more than 50,000 industries were shut down. This downturn has become a matter of concern for Subbarayan, who is also a deputy secretary of the party in the state.
The CPI leader Subbarayan asked if the Centre was at the beck and call to prepare a ‘whitepaper’ on the condition of MSME in India after the implementation of GST since there were reports which state that more than six lakh industries were closed. All the elected MPs of Tamil Nadu will issue a memorandum to the government, he further added.
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Tiruppur is a hub for MSME and Knitwear industries, Subbarayan who emerges as a winner in Tirupur is concerned about the plunging state of the MSME sector and hence took immediate steps to overcome this critical condition.
Being a deputy secretary of the party in Tamil Nadu, Subbarayan laid emphasis on the CPI’s stance on relieving the Tamil Nadu from the National Eligibility-cum-Entrance Test (NEET).
