Power loom, cracker industry unhappy; want exemption

Power loom, cracker industry unhappy; want exemption

Power loom, cracker industry unhappy; want exemption

The AIADMK government in Tamil Nadu is all set to rollout the GST regime despite opposition from all major political parties, including the DMK and the Congress.

All the authorities concerned from the State Commercial Taxes and Registration Department were involved in conducting seminars and workshops in all the districts to create awareness among traders and small businessmen. They were also engaged in giving training on the new tax structure.

A few sectors, including power loom and cracker manufacturers, are opposing GST and are seeking an exemption. The hotel industry, software companies, electronic manufacturers, automobile production factories and realtors have already started to incorporate the aspects of GST in their financial software.

“We started our work a week ago. Though initially there were some hiccups, everything will be streamlined before July 1,” said a senior staffer at the ITC Grand Chola, Chennai.

Most of the employees attached to the finance department in several companies across the state have started working overtime to give final touches for implementing GST. A senior official from the Service Tax Department (Chennai zone) told DH that more than 90% of companies and traders in the state, who pay VAT, have shifted to GST by registering themselves in the new tax portal.

Though state Finance Minister D Jayakumar reiterated that the new tax structure will not only help in reducing inflation but will also clear the confusion with regard to overlapping of state and central taxes.

Several political leaders, including the late AIADMK general secretary and chief minister J Jayalalithaa, and DMK working president M K Stalin, had opposed GST saying it compromises on the autonomy of the states in fiscal matters. However, giving justification to implement GST in the state, Chief Minister Edappadi K Palaniswami said that the Centre had made several amendments in the uniform tax structure according to the state's wishes.