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Higher GST tax rate irks small businesses in south

Posted July 10th, 2017, 03:17 PM IST

Higher GST tax rate irks small businesses in south

Madurai: Businessmen involved in manufacturing hollow blocks expressed serious concern over imposing 28 per cent for their products under the new Goods and Services Tax (GST) regime.

At an interactive meeting here on GST issues presided by the Union minister of state for Commerce and Industry, Ms. Nirmala Sitharaman, Thiru. B. Kannadasan, secretary, 'Concrete Pavers and Blocks Manufacturers Association', said that though they use small amounts of cement for manufacturing hollow blocks, the government has fixed 28 per cent GST for it. "Hollow blocks manufacturing is a cottage industry supplying products to people who cannot afford to construct buildings using bricks and for laying roads in the villages," he pleaded.

Another businessman Thiru. N Pandi, involved in traditional candy making business, said that the government has imposed 18 per cent GST for traditional candy, which would perish in two days. “It will only help the big companies to control the business who use ingredients to preserve their candy items for a month," he lamented.

The 'Tamil Nadu Roller Flour Mills Association' demand to remove the five per cent tax imposed on flour with registered brands to enable a level playing field. Small traders involved in selling homemade pickles in 50 gram packets and traditional food items urged full exception from GST.

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