National

GST blues: MSMEs in TN halt production

LN Revathy Coimbatore | Updated on January 12, 2018 Published on June 13, 2017

Micro units that are into manufacture of products are in a fix. Industry insiders say that a number of units have halted production at least a fortnight ahead of the GST rollout, fearing loss of input tax credit on the inventory held by the them.

Suresh Krishnan R, Proprietor, Gramma Weighing Technology, said that they have relinquished the stock on hand and halted production for the time-being.

The company, which is into making of electronic weighing machines for the industry and retailers, sells 60 to 70 machines a month. “We have done close to 100 this month and stopped production. Orders continue to flow, but we are not executing them for the present,” Krishnan told this correspondent.

He voiced concern on the 28 per cent rate-fitment under GST for weighing machines. Some have voiced anxiety over payment of wages to the workers. “Just because we do not want to hold inventory and have halted production for the present, we cannot deny the workers their wages,” said another, preferring anonymity.

Discount offers

While the manufacturing sector is indulging in a go-slow tactics to control the closing stock volumes, the traders, particularly those dealing in white goods, are making discount offers.

Notwithstanding the stand taken by the trading community/ dealers and manufacturers of products, those in the services space also seem to be putting off any commitment for now.

Those in the know of development within industry circles say this would impact rotation of funds and business.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on June 13, 2017
This article is closed for comments.
Please Email the Editor