Madurai based Agrofood Chamber warns govt that GST slab rates hike will harm MSMEs

Madurai, March 9 (KNN) Madurai based Agrofood Chamber of Commerce and Industry has cautioned the government that an increase in the GST slab will drastically hit the micro, small and medium enterprises (MSMEs) which are still recovering from the post-Covid phase.

S Rethinavelu, President of Agrofood Chamber, said, “The likelihood of Union Finance Ministry increasing GST slab rates from 5, 12, 18 and 28 per cent to 8, 18 and 28 per cent come as a rude shock to the trade and industry and MSMEs.”

He opined that this move will also impact the prices of all commodities to rise at a moment when India is already facing unprecedented inflation due to the Russia-Ukraine conflict. 

The increase in tax rates would only encourage tax evasion, Rethinavelu he said. 

He said that the trade and industry is hoping for this news of increasing GST rates to remain a rumour. (KNN Bureau)