Latest news with #SouthernIndiaEngineeringManufacturersAssociation
The Hindu
2 days ago
- Business
- The Hindu
Coimbatore MSMEs hope for lower GST rates
Micro, Small and Medium-scale Enterprises (MSMEs) in Coimbatore hope the GST rate revision announced by Prime Minister Narendra Modi will bring down the duties applicable for them. 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.
The Hindu
19-07-2025
- Business
- The Hindu
Pumpset makers seek cut in GST on agri-pumps
Manufacturers of pumpsets for agricultural applications have reiterated their demand for reduction of GST on these products to 12% from the existing 18%. The government increased the GST to 18% about three years ago mainly because the manufacturers supplying to Original Equipment Manufacturers (OEMs) had problems in getting input tax credit. However, with 18% on agri pumps, farmers prefer to buy unbranded pumps that are sold without GST. This has brought down sale of branded and energy efficient pumps tremendously. The manufacturers are able to take 11.5% to 13% input credit. The rest is passed on to farmers. By reducing the GST to 12% the farmers will get substantial cost advantage, said Mithun Ramdass, president of the Southern India Engineering Manufacturers Association. 'This is a demand that we have placed before the government multiple times. The government has also assured to look into it because with the GST rate at 18%, many farmers are buying spurious pumps that are not energy efficient. Several States supply free power to farmers and the increasing use of unbranded pumps pushes up energy consumption. We are hopeful of a reduction in the GST soon,' added KV Karthik, president of the Indian Pump Manufacturers Association. The market size for agricultural pumps in India is almost $1 billion. If the GST is reduced to 12%, demand from farmers will go up and revive the branded agriculture pump set sector, said a manufacturer in Coimbatore.
