(MENAFN- KNN India) GST Blues: Gujarat Jewellery MSMEs register low business, artisans out of work
New Delhi, Sept 23 (KNN) With three months into the newly rolled out Goods and Services Tax (GST) in the country, the jewellary industry of in the Surat region of Gujarat comprising of primarily Micro, Small and Medium Enterprises (MSMEs) have registered low business leading to cut down in employment of the sector.
Nainesh Patchigar, Chairman of Southern Gujarat Chamber of Commerce and Industry (SGCCI) in a press statement informed that with the GST council yet to provide exemption to small units on the inter-state supply of jewellary items on job work, the sector are not getting orders, because of which the MSMEs in the sector are already out of business.
Earlier during the GST council meeting held at Hyderabad the council announced exemption of job workers engaged in making inter-state taxable supply of job work service to a registered principal from registration as long as the goods move under the cover of an e-way bill, irrespective of the value of the consignment. With reference to the jewellary sector, this exemption was not extended to job work, because of which the sector is suffering.
The city of Surat being the hub of jewellary manufacturing in the country, it receives its raw material from different cities including Mumbai, Ahmedabad and also from the state of Madhya Pradesh.
With the manufacturers in Surat out of orders, the cascading effect is likely to overshadow the allied industries as well, Patchigar added. (KNN/DA)
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