On Friday evening, with few hours to go for the roll out of GST, several industries here were still not clear on details to be entered, how it would have to be done.
Be it jewellery manufacturers, micro units or even large-scale industries, industry sources pointed out that they were not clear about the details for making day-to-day entries.
At one of the leading automobile component manufacturing units, all data were documented manually on Friday. “We have seen just 50 % outgo of products this month as everyone is waiting for GST,” said a top executive of the company.
At another medium-scale company, there was confusion over HSN code and even entering the registration details of the company. “I make automotive jacks that are used to lift automobiles partially for repair works. So far the product was classified as lifts. Under GST, lifts attract 28 % rate and the jacks attract 18 %. Also, the last digit in the registration should be a number according to the GST software that I have. But for the registration ID that I have, it is an alphabet,” says the unit owner.
A stone sculptor here points out that the GST for marble inlays is 28 %. However, cottage industries buy scrap from industries for the work. Also many stone products makers buy the left over blocks for smaller projects. “How can I declare inventory for these,” he asks.
Even now many units are yet to register under GST, the sources say.
Banks are asking us for GST registration number. Bigger units that give job orders also want us to register for GST. It is going to be difficult for micro units, says J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises.
For micro units, business dropped 50 % in the last 10 days and is expected to pick up only after a week. “Material movements have reduced. A number of micro units are not sure whether they would come under above ₹20 lakh annual turnover and so have not registered. About 20 % units that come under GST have accountants who helped in migration and will now upload data every month,” says S. Ravikumar, president of Coimbatore and Tirupur District Micro and Cottage Entrepreneurs Association.
From Saturday, those who do not see a clear description for the product they make will start entering details based on the HS code that is closest to the products that they manufacture. The real problem will start after three months when they start filing returns and when the Government also starts taking action. There should be a facility for MSMEs to write to the Government and verify the HS code for their product. MSMEs need more than a year to migrate, says V. Sundaram, president of Coimbatore District Small Industries Association.
