Small scale industries of the region fear a drop in production and profitability due to subsuming excise exemptions and increased administrative work with the implementation of Goods and Services Tax.
Industry participants said excise exemption to industries with a turnover up to Rs 1.5 crore will be subsumed.Some provisions should be made for small industries otherwise they will die a slow death. Government aims to bring all industries at par but these small ones do not have sufficient infrastructure to compete with large industries.
Industrialists said about 80 per cent of industries in the region are small scale ones and most of them enjoy excise exemption under the current tax structure.
GST is expected to be implemented in the country from July, 2017. It is beneficial for large industries but it will be difficult for small industries competing with larger companies.
GST will bring every industry across the nation at par, which is good but how can benefits of small scale and large scale industries be the same?
Dealers registered with GST will have to file 37 returns in a year in phases that will increase the work load and complications for the merchant.