Union Budget: Tamil Nadu MSMEs call for lowering of GST on manufacturing to 12 per cent

New Delhi, Jan 29 (KNN) The Finance Minister Nirmala Sitharaman has been urged by the Tamil Nadu Chamber of Commerce and Industry (TCCI) to slash the Goods & Services Tax (GST) on manufacturing for MSME from 18 per cent to 12 per cent owing to the continuous increase in raw material prices. 

The chamber expects the changes to be introduced in the upcoming union budget. 

It has also asked the government to consider simplifying of taxation, investment and offering further incentives to Indian startups.

In order to stabilise the economy which is impacted by the pandemic, the government must offer incentives to startups and MSME units which will lead to revenue and employment generation, said the chamber.

N Jehatheesan, President of TCCI expressed optimism from the Union Budget for the MSME role as it’s an important sector for overall development of the country. 

Their expectation also include measures such as streamlining approvals, compliance for ease of doing business, quicker adoption of technology and the accessibility of funds.

To boost domestic manufacturing, it has also suggested including different sectors in the production linked incentive (PIL) scheme.