Coimbatore: Coimbatore District Small Industries Association (Codissia) has urged the Union govt for modifications in income tax and GST for small businesses.
Codissia submitted a memorandum to Union finance minister Nirmala Sitharaman on Monday, requesting petrol, diesel, and electricity to be brought under the GST.
The association wanted the finance minister to recommend the GST council to reduce the current GST slab to 5, 10, and 15%.
“In the prevailing business scenario, all industries in the manufacturing sector are facing a decrease in turnover by around 30%. To improve the economic activity, GST rate reduction of 5% is requested for all slabs,” said the memorandum sent by Codissia president M Karthikeyan.
The association wanted GST rates for cement and automobiles to be brought down to 18%.
As far as income tax was concerned, the rates for partnership firms should be reduced to 20%, the memorandum said. For individuals, tax on income between Rs 5 lakh and 15 lakh should be reduced to 5%.
Seeking incentives for adopting green energy, Codissia wanted an accelerated depreciation at 80% for green energy generation and electric vehicles. The association sought exemption under Sec 80-IA for solar power plants to be installed during the next few years.
Highlighting the existing norms with E-way bills, Codissia said the expiry date of E-way bills on national/festival holidays and Sundays should have an automatic rollover to the next working day.
“There are numerous delays caused due to issues like traffic congestion and road work. In such cases, the roving squad should avoid levying penalty,’’ it said.
In the banking sector, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act), which allows banks to auction properties to recover defaulted loans, should be modified in consultation with industrial associations, Karthikeyan said.
Since banks are reluctant to provide loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, a district-level monitoring committee should be established under the chairmanship of the district collector with members including the general manager of the district industries centre, lead bank, and two leading MSME associations, Codissia said.
Codissia submitted a memorandum to Union finance minister Nirmala Sitharaman on Monday, requesting petrol, diesel, and electricity to be brought under the GST.
The association wanted the finance minister to recommend the GST council to reduce the current GST slab to 5, 10, and 15%.
“In the prevailing business scenario, all industries in the manufacturing sector are facing a decrease in turnover by around 30%. To improve the economic activity, GST rate reduction of 5% is requested for all slabs,” said the memorandum sent by Codissia president M Karthikeyan.
The association wanted GST rates for cement and automobiles to be brought down to 18%.
As far as income tax was concerned, the rates for partnership firms should be reduced to 20%, the memorandum said. For individuals, tax on income between Rs 5 lakh and 15 lakh should be reduced to 5%.
Seeking incentives for adopting green energy, Codissia wanted an accelerated depreciation at 80% for green energy generation and electric vehicles. The association sought exemption under Sec 80-IA for solar power plants to be installed during the next few years.
Highlighting the existing norms with E-way bills, Codissia said the expiry date of E-way bills on national/festival holidays and Sundays should have an automatic rollover to the next working day.
“There are numerous delays caused due to issues like traffic congestion and road work. In such cases, the roving squad should avoid levying penalty,’’ it said.
In the banking sector, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act), which allows banks to auction properties to recover defaulted loans, should be modified in consultation with industrial associations, Karthikeyan said.
Since banks are reluctant to provide loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, a district-level monitoring committee should be established under the chairmanship of the district collector with members including the general manager of the district industries centre, lead bank, and two leading MSME associations, Codissia said.
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