The Goods and Services Tax (GST) has not affected industries and has only created a level-playing field for small-scale units, claimed R. Kalyanasundaram, president of Tamilnadu Pumps and Spares Manufacturers’ Association (Tapmaa).
Mr. Kalyanasundaram told presspersons here on Saturday that subsequent to introduction of GST, its 120 members who manufacture pumps have seen 10 % to 15 % growth in turnover. Refuting claims that GST has resulted in job losses, he said even now there is shortage of labour at the industries here. “We are in this industry (manufacture of pumps) for over 30 years now and have seen several tax reforms. GST is very practical and brings down prices for industries,” he said.
Pump manufacturers in Coimbatore purchase raw materials mainly from the northern States and sell pumps in other States. “There is no C form, indirect taxes, or VAT.” There is nearly four per centage points advantage in taxes under GST compared to the earlier tax system for pumpset manufacturers, he claimed.
Mr. Kalyanasundaram said he has also sought reduction of GST on job work for engineering sector as some units face a delay in getting payments. Reports that some of the micro industry associations have said the some of the raw materials attract 28 % is false, he claimed and said there is no closure of industries here because of GST.
The Coimbatore Wet Grinders and Accessories Manufacturers’ Association has said in a press release that BJP candidate C.P. Radhakrishnan had helped bring down the GST on wet grinders from 12 % to 5 %. With GST, the manufacturers are able to take input credit for the tax paid on raw materials, which was not possible in the earlier system. Since the entire filing of returns has been made online, the industry has benefited, said the association president Saasthaa.M. Raaja.
Source :- Thehindu.com