New Delhi, July 4 (KNN) The Goods and Services Tax (GST) was rolled out on July 1 in the country marking it as one of the biggest tax reform. The complications in understanding compliance under the new tax regime is giving a difficult time to the Small Scale Industries in various parts of the country.

Talking to KNN, Amarjit Singh Chauhan, President at Small Scale Industries Association Ludhiana (SSIA) explained the situation.  “The tiny and small scale industries were not prepared for the implementation of the GST, we have time and again brought this before the officials, yet the GST was implemented as planned from July 1” he said.

He acknowledged  that while the GST might prove to be beneficial in the long run, currently the industries that operate on small scale are confused over the norms and regulations of the bill.

“While we do welcome the GST bill with open arms, yet there should have been proper preparedness in place before the implementation” he added.

Amarjit further lamented that the tax slabs for certain commodities are not very logical. Similar parts are used in manufacturing tractors, automobiles and other machineries, yet the tax slabs operate differently on the commodities making the rates ambiguous.

Listing out the problems Amarjit said that there is very little literacy among the industrial workforce that operates on small scale. Also since the billing is to be done online, it requires computers and software. It will take time for the small scale industry to purchase and learn to operate accordingly.

He further said that even the government officials in the region (ie) Ludhiana are not well informed about the ‘ifs’ and ‘buts’ of the new tax regime. Each time the industry approaches them for understanding the bill, they are asked to wait.

“The small scale industry is not scared of paying tax but we fear paperwork. We would want the government to simplify the procedures and not to penalise us initially” said Amarjit.

Similar reports of the confusion among the small scale industry have been coming from different regions of the country.

In a press interview VS Narasimhan, National General Secretary, Federation of Association of Small Industries of India said that the GST is not very friendly for the small businesses to adapt to. The small and micro units need to be given time to go digital. (KNN/ DA)