Mysuru, July 18 (KNN) M Veerappa Moily, Chairman of the Parliamentary Standing Committee on Finance, has assured the industrialists in Mysuru that the committee will discuss the problems being faced by micro, small and medium enterprises (MSMEs) post GST implementation.

Moily assured the industrialists in the district that their problems will be brought to the notice of the Central Government.

He was addressing the media after receiving the memorandum from several industry bodies including - Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Karnataka Small Scale Industries Association (KASSIA), Mysore Industries Association (MIA), Association of Women Entrepreneurs of Karnataka (AWAKE), Mysore Chamber of Commerce and Industry (MCCI), Confederation of India Industry (CII) and a few others.

Moily said a report will be presented to the centre after conducting a meeting with the industrialists in the region over issues being faced by them.

The memorandum submitted by the industry bodies although hailed GST, however, they alleged that lack of proper implementation has left hundreds of MSMEs suffering and has ended up becoming a big burden for the tax payers.

On this, Moily said the Committee will discuss about the matter.

The associations also highlighted that lack of support from the banks are leaving no option with the MSMEs but to look upto the private lenders who charge very high rate of interests.

Schemes like MUDRA, loans for new entrepreneurs and capital based loans are all only on paper. The fact is that the industrialists are forced to go from bank to bank to get loans, said the associations.

To stop this type of harassment, the application must be made online. The GST must be simplified. The tax on a few of the raw materials has gone up and it has to be brought down. Likewise, there is confusion in taxes on finished products and even this should be set right, he urged. He called for the banks to make concrete effort to increase the quantum of lending to the MSME (Micro Small Medium Enterprises) sector.

GST on job works were earlier exempted from payment of tax under the VAT. However, with the introduction of GST, job works is taxed at 18%, which is causing a lot of hardship to the micro and small units who are the main players performing the service for larger units.

Hence, job works must be brought under 5% GST or completely exempted, Karnataka CII State Council Chairman N. Muthukmar said adding that it is only if the small scale industries survive will the nation progress.

The memorandum also suggested doing away with Casual Registration under GST and urged that in addition to One-Nation-One-Tax there also ought to be one registration system, for enabling ease of doing business.

In the memorandum the associations also demanded doing away with CIBIL score for financial assistance, said Muthukumar.