‘GST hike for pumpsets will hit micro units in Coimbatore’

Hike in GST rates for pumpsets is a blow to micro units in Coimbatore, say industry representatives.

KV Karthik, president of Southern India Engineering Manufacturers’ Association, said farmers have to pay the extra amount because of the hike.

The purchasing capacity of the farmers is already under stress. In Tamil Nadu there are 23 lakh free agricultural connections. On an average 10 % is replaced. The power generation and distribution costs because of inefficient pumps will be higher. A category for agricultural pumps should be created and it should come under 12% slab.

A large number of micro units here do job work for pumpset manufacturers. “The product (pumpset) will become expensive for the customer. When a farmer stops buying a pump or looks for an alternative, the manufacturer will be affected,” said C. Sivakumar, president of Coimbatore and Tiruppur District Micro and Tiny Enterprises Association.

J. James, president of Tamil Nadu Association of Cottage and Tiny Enterprises, said the moves of the Union government hit the operations of the micro and small-scale units. The government does not offer any support scheme for these units and does not focus on the development of this sector.

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Printable version | Aug 11, 2022 9:29:59 am |