GST related concerns-lack of state govt support impacting MSMEs in Punjab, business dip by 20-25%: FOPSIA

Ludhiana, Apr 2 (KNN) The problem of refunds under the Goods and Services Tax (GST) and the absence of state government support is proving to be fatal for the Micro, Small and Medium Enterprises (MSMEs) in Punjab, Federation of Punjab Small Industries Association (FOPSIA) said.

Talking to KNN, Badish Jindal, President of Federation of Punjab Small Industries Association (FOPSIA) informed that the small scale industry was already crippled post demonetization and the new tax regime was being seen as a relief but it worked otherwise.

“With the refunds under GST stuck for months now, the industry especially the MSMEs are choking and the overall business is low by over 20-25 per cent in last one year”, Jindal said.

Jindal further said that in such a scenario, the industry expected state government to play an essential role in handholding the MSMEs.

“The state government approach continues to be election centric and no attention is being paid to the small industries, there is nothing being done to reduce the stress on the sector”, he lamented.

Commenting on the possibility of industries relocating and shifting to other states of the country, Jindal said while for a big industry it is easy, for MSMEs it is practically impossible to shift.

“Big players are already moving out of the state since they want a state wherein there is more ease in doing business, but when it comes to a micro, small and medium enterprise it can’t move out that easily”, he added.

The overall situation of industry in state is pathetic and if situation persists, it is going to impact the economy as well as social scenario in a negative way, he added. (KNN/ DA)