The Vellore District Small and Tiny Industries Association has appealed to the Union Finance Minister Arun Jaitley to recommend to the Goods and Services Tax Council a cut in rates for a number of items. The association also wanted an increase in the exemption limit from ₹20 lakh to ₹1 crore.
In a letter sent to Mr. Jaitley, the association’s president R. Amirthakatesan said there was an abnormal increase in the cost of leather and leather chemicals. Hence, most of the micro and small industries had closed down. It was very difficult for them to implement the GST proposal.
He pointed out that most of the businesses had not been able to understand the complexities of the proposed GST. Traders as well as service providers, small and medium enterprises and cottage industries across the country were sceptical about their survival due to certain provisions in the GST law. A large number of traders and small manufacturers, who were not liable for registration under present laws such as excise duty, service tax, State VAT, would become liable to pay tax under the GST laws.
He noted that in the present circumstances, rolling out GST on July 1 was not feasible at all. He added that the proposed GST rates would affect the functioning of micro and small industries.
He urged the Union Minister to take up the matter with GST council for reduction of rates for items such as raw hides and skins and leather, articles of leather, job works of leather, knee pads, saddle bags, iron and steel, articles of iron and steel, inorganic chemicals and organic chemicals.
The exemption limit under GST was ₹20 lakh now. Since the cost of materials, labour and consumables had increased, the exemption limit should be enhanced to ₹1 crore, he added.
He also said that if any trader registered under GST Act failed to pay the tax, he would be punished by imprisonment. Mr. Amirthakatesan said this should not be implemented at least for two years till the traders were able to fully understand the GST Act.
