Coimbatore MSMEs hope for lower GST rates
The Indian Chamber of Commerce and Industry, Coimbatore, welcomed the recent announcement by the Prime Minister regarding GST reforms.
The proposed measures, including reduced tax rates, automatic GST registration, and faster input credit refund process, are expected to benefit entrepreneurs, especially small and medium enterprises and traders, said the Chamber president Rajesh Lund in a press release.
The Southern India Engineering Manufacturers Association president Mithun Ramdass said the earlier duty (VAT regime) for pumpsets was 11%. When GST was introduced, pumpsets had 12% duty. However, some of the large brands suffered inverted duty structure and hence the rate was revised to 18%. 'The ideal rate should be 12%. However, since the 12% slab will be removed, we do not foresee any changes in GST for pumpsets,' he said.
According to J. James, president of the Tamil Nadu Association of Cottage and Tiny Enterprises, the job working micro and cottage industries pay 18% duty and face Rs. 50 a day as penalty if the duty is not paid by the 20th of every month. The system should be simplified and the job working units should get exemption, he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
23 minutes ago
- Economic Times
This Bangalore-based professional can save Rs 70k income tax just by switching to new tax regime
WRITE TO US FOR HELP Bengaluru-based Avinash Tandon is a finance professional. He has chosen the old regime because he has a joint home loan with his wife and invests in many tax-saving instruments, including ELSS ( equitylinked savings scheme ) funds and the National Pension System (NPS). He pays a high tax as his salary structure is not he will save more if he shifts to the new tax regime . The new regime offers no deductions and exemptions, but the standard deduction is higher at Rs.75,000, and tax slabs are wider, with lower rates. Even if no deductions are available, there is room for tax savings. He is already contributing 14% of his basic salary to the NPS, which is tax-free under the new regime (10% of basic salary under the old regime), and he should continue with has also invested about Rs.4 lakh in fixed deposits and NSCs ( National Savings Certificates ), and earns an interest of Rs.30,000 on these. To save tax, he should switch from these investments to debt funds or arbitrage schemes. While the interest income is taxed every year, in debt and arbitrage funds it is applicable only at the time of withdrawal. This can reduce his tax liability by Rs.9, has also made long-term capital gains of Rs.2.5 lakh from stocks and equity funds . Regular harvesting of capital gains to remain within the tax-free limit of Rs.1.25 lakh can help reduce tax he can reduce his overall tax by more than Rs.70,000 by shifting from the old to the new tax regime Paying too much tax? Write to us at etwealth@ with 'Optimise my tax' as the subject. Our experts will tell you how to reduce your tax by rejigging your pay and investments.
Economic Times
23 minutes ago
- Economic Times
Sellers for now, FPIs may rethink Indian equities
In the current calendar year so far, they have invested about ₹38,814 core ($4.5 billion) in the primary market compared with ₹54,884 crore ( or $6.6 billion) in the first eight months of the previous year. FPIs intensified selling in Indian equities in early August due to US import duties, selling ₹20,974.9 crore worth of equities. Despite this outflow, a recent credit rating upgrade by S&P and potential GST reforms offer hope for improved investor sentiment. Domestic mutual funds have increased their investments to partially offset the FPI selling pressure. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ET Intelligence Group: Foreign portfolio investors (FPI) increased selling intensity in Indian equities during the first fortnight of August compared with the previous month amid rising uncertainty over the country's global trade after the US imposed 25% import duty on Indian goods from August 7 with an extra penalty tariff of 25% slated to be effective on August the latest upgrade in India's credit rating by S&P to BBB from BBB- and a possibility of trade negotiations to avoid high tariffs may prompt FPIs to change stance on Indian equities in the coming weeks. Additionally, the proposed significant overhaul of slab rates under the goods and services tax (GST) Act is expected to reduce the inflationary pressure on consumers thereby supporting demand during the festive season from in turn, may lift sentiment among sold equities worth ₹20,974.9 crore ($2.4 billion) in the month as of August 14 compared with ₹17,740.6 crore ($2.1 billion) for the whole of July. They were net sellers for eight out of ten trading sessions so far in August. In 2025 so far, they have sold equities worth about ₹1.2 lakh crore ($13.3 billion). This compares with a net purchase of about ₹42,879 crore ($5.2 billion) in the first eight months of the primary market, which consists of investments in initial public offerings (IPOs) and qualified institutional placement (QIP), FPIs slowed their pace with a purchase of ₹2,579.2 crore ($294.1 million) in the first half of August 2025 compared with ₹4,908.6 crore ($573 million) bought in the corresponding period of the previous the current calendar year so far, they have invested about ₹38,814 core ($4.5 billion) in the primary market compared with ₹54,884 crore ( or $6.6 billion) in the first eight months of the previous year. Domestic mutual funds partially offset the impact of the FPI outflow by increasing their investment four times to ₹33,223 crore till August 11 compared with ₹Rs 8,310 crore invested in the corresponding period of July.
Time of India
23 minutes ago
- Time of India
From record IPOs to mutual fund boom: Small-town impact & other key trends shaping Indian financial markets
Buoyant IPO market Unit holding pattern of mutual funds Mutual funds saw addition of Annual returns in major indices Academy Empower your mind, elevate your skills Unique investors in mutual funds India topped the chart in global rankings by IPO volume, says EY's Global IPO Trends 2024 report Distribution of SIP folios Sebi's annual report for 2024-25 reveals a landmark year for Indian financial markets . IPO fundraising exploded to a record Rs 1.7 lakh crore across 320 companies, cementing India's global leadership in public offerings. Simultaneously, mutual fund democratisation accelerated with tier III cities, driving investor growth to 5.4 crore unique participants. Small-ticket SIPs under Rs.500 doubled, while trading volumes surged across segments. The data underscores India's financial market maturation and expanding retail participation beyond traditional metro corporates raised a record quantum of capital through equity issuances, registering the highest ever annual resource mobilisationfolios, bringing the total number of investor folios to 23.5 2024-25, Indian equity markets exhibited a tale of two halves. The first half saw significant gains followed by consolidation and corrections. Equity indices also saw mixed III cities accounted for the largest share, growing from 2.6 crore to 3.3 crore, indicating deepening penetration of mutual funds beyond metro and urban number of SIP folios with a ticket size of less than Rs.500 saw the biggest jump in 2024-2025.
