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13/07/2022 04:43pm

Tamil Nadu SMEs in auto component manufacturing upset over GST disparities

image Tamil Nadu SMEs in auto component manufacturing upset over GST disparities

Chennai, July 13 (KNN) The Auto-component manufacturers in the Hosur region of Tamil Nadu have urged the union government to address the disparities in the GST. The manufacturers of the region said that they’re levied 18-28 percent GST as automobiles come under luxury products which in return the small units cannot afford to pay.

“There is a mismatch between the tax rates of our raw materials and our finished products, making it difficult for us to claim an input tax credit (ITC), said Gnanasekaran of Hosur Small and Tiny Industries Association (Hostia).

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“We buy raw materials at 18 per cent and sell our products at 28 per cent. In some cases, we get the additional 10 per cent of the taxes after 90 days till then we have to get money from banks and money lenders. This is increasing our cost up to Rs 50- 80 lakhs per year,” he added.

There are around 3,000 MSMEs involved in auto component production in the region. They supply components for TVS and the Ashok Leyland, among others. 

Earlier the Industry representatives had request the government for monthly filing and quarterly payment of GST for small and micro industries.

“This would reduce the compliance burden and improve the financials of the SMEs,” said S Vasudevan, vice-president (Chennai region) of Tamil Nadu Small and Tiny Industries Association (TANSTIA).  (KNN Bureau)

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