TN's Fishing Net MSMEs in bad water as complications continue under the new regime

New Delhi, Oct 6 (KNN) The fishing net industry comprising of Micro, Small and Medium Enterprises (MSMEs) is in doldrums since the implementation of the Goods and Services Tax (GST). The complications of the sector have further escalated from bad to worse, Indian Fishnet Manufacturers Association informed.

Talking to KNN, Ramanathan Jayaraman, President of the Indian Fishnet Manufacturers Association informed about the present situation of the industry under the One Nation One Tax regime.

He said that under the new taxation, for small and medium scale fishnet Industry, the margins have reduced to half in nearly 4 months.

He further informed that the fishnet industry being a low margin industry mainly comprises of small and medium scale firms, which have been hit hardly due to GST. 

There are over 550 net manufacturing MSMEs in the country, majority of them being in the state of Tamil Nadu. Earlier the industry was exempted of VAT, which was futile due to competition from Chinese products that are priced 20% less than the Indian counterparts.

Now with introduction of GST, the fishing nets are placed under the slab of 12% and fishing claws, an important product used in the manufacturing of fishnets face 28 per cent GST.

He also added that most of the small-scale firms in the industry are out of the business and many semi-skilled workers have lost their jobs. 

While the medium scale units are somehow coping up and surviving the GST ecosystem, the tiny and micro units are on the verge of closure, he added. (KNN/AG)