New Delhi, Sept 14 (KNN) In the Goods and Services Tax (GST) regime implemented few months ago, the fishnet industry comprising primarily of the Micro, Small and Medium Enterprises (MSMEs) are sinking under the new tax regime, Indian Fishnet Manufacturers Association (IFMA) said.

Talking to KNN, Ramanathan Jayaraman, President of the Indian Fishnet Manufacturers Association said that the situation under GST is proving to be fatal for the fishnet making MSMEs.

Listing the problems, Jayaraman said that the tax slabs have been an issue that was raised long before the roll out of the tax, not then and not even now the GST council has paid any heed to the demand of the micro and tiny units involved in the fishnet business.

“We approached the government on a prevention better than cure aspiration and informed that the 12-28 per cent tax slab on the products of this sector will badly injure the sector, yet the government went ahead with its plans and has no ear for our woes” said Jayaraman.

He further informed that the sector is bearing the implication of the new tax, as a result of which the sales have gone down by over 80 per cent, leaving the MSMEs paralysed.

Jayaraman added that the drop in sales is already having a cascading effect, making MSMEs out of businsses with pending dues and salaries to its workers.

He informed that while most of the sector are given a hearing when they take their issues, the fishnet MSMEs are totally powerless and the situation is growing from bad to worse.

Commenting upon the complications in compliance, Jayaraman said that even the trained CA’s are not able to fully help understand the GST, expecting a normal businessman to understand the new taxation is totally impossible.

Earlier the fishnet industry was exempted from the taxation in the previous regime since the units involved in making the fishing-net work on tiny and micro level and do not work on huge profit margins. But with the coming of GST in the country, the item is placed under 12 per cent.

Tamil Nadu houses a number of net manufacturing MSMEs in the country. (KNN/ DA)