New Delhi, Sept 9 (KNN) The textile sector in the northern state of Punjab comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) is bearing severe implications under the anomalies of the Goods and Services Tax regime.

Talking to KNN, Rajeev Mittal, Executive Member of the Northern India Textile Mills Association (NITMA) and Director at Aarti international Limited explained the situation of the sector now that it’s the third month into the One nation One Tax regime.

Mittal informed that like other sectors, even the textile sector of the country greeted the newly rolled out GST, willingly or unwillingly, but the fears that the industry had is starting to meet reality.

Citing the problems, Mittal said that the entire value chain system is being hampered due to the improper structures of IGST under the GST regime.

Mittal informed that while the big industrial players continue to play unaffected, the micro and small enterprises are feeling the pinch as they are not able to survive the market competition because of the pending tax credits.

The sector was grappling with the after effects of the demonetization drive of the government last year ,followed by the GST, the situation for the MSMEs in the sector is growing from bad to worse.  There are several representations that are being sent to the government and the sector is in constant dialogue with the authorities demanding redressal of the issue, but a positive sign is yet to come, he informed.

Earlier the Finance Minister of the state of Punjab Manpreet Singh Badal raised similar concerns with regard to the IGST and assured that the government will be taking it up with the GST council. (KNN/ DA)