New Delhi, August 17 (KNN) With almost two months into the Goods and Services tax (GST), the fishing net manufacturing industry comprising of Micro, and Small Enterprises (MSEs) of Tamil Nadu have started to bear the negative implications under the new tax regime.
Talking to KNN, Ramanathan Jayaraman of the Chidambaram Fishnets explained that the fishnet industry was exempted since the units involved in making the fishing-net work on tiny and micro level and do not work on huge profit margins. But with the coming of GST in the country, the item is placed under 12 per cent, which is causing a lot of unease in the sector.
He further informed that even with an exemption in the VAT regime, the industry was not in a very good shape due to the rising imports from China.
“The imports from China was already haunting the domestic industry, their nets are priced 20-30 per cent less than the price of our nets, which we keep at marginal profit. The already unstable industry is now placed under 12 per cent GST, which is not in the best interest of the sector,” said Ramanathan.
He further said that apart from 12 per cent GST on fishing net, other accessories of the sector such as fishing claws are placed under even higher tax slab of 28 per cent.
With two months into the GST, several units in the region have already shut their operations and thousands of semi-skilled, unskilled labours are sitting jobless because of the new taxation.
Also, earlier the Indian Fishnet Manufacturers Association raised similar concerns. The Association said that the tax on the sector is proving to be fatal and must be revoked as soon as possible.
There are over 550 net manufacturing MSMEs in the country, majority of them being in the state of Tamil Nadu. (KNN/ DA)