‘Small scale industries are severely affected by GST’

Neha Basudkar
Saturday, 13 April 2019

While speaking with Sakal Times, President of Small Scale Industries Association Sandeep Belsare said that there are more than 6,000 small scale industries operating in Pimpri-Chinchwad along with some parts of Pune having employability of more than 2 lakh people.

PIMPRI: Ever since Goods and Services Tax (GST) has been implemented, it has affected the small scale industries as they think that the earlier tax system was much more feasible. Along with it, due to the absence of proper infrastructure, the industries have been experiencing 10 per cent of job losses each year.

While speaking with Sakal Times, President of Small Scale Industries Association Sandeep Belsare said that there are more than 6,000 small scale industries operating in Pimpri-Chinchwad along with some parts of Pune having employability of more than 2 lakh people. 

“Earlier, when GST did not exist, we had to pay Value Added Tax (VAT) which was much more feasible and convenient to pay than the current GST, because we use to pay VAT quarterly. In the current GST system, there is no such feasibility to pay the taxes quarterly, which sometimes affects the owners of the industries as they do not get payments from the clients on time,” Belsare said.

Belsare further said, “Even after having a huge number of small scale industries in Pimpri-Chinchwad and some parts of Pune, there was no proper infrastructure. This was leading to 10 per cent of job losses each year. Earlier, the Pune International airport was proposed at Chakan but due to political interference, the site was shifted to Purandar”.

Director of Small Scale Industries Association Sanjay Satav said, “According to The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the client from whom the business comes should be paying us within 60 days. But most of the times, we do not get the payment on time, due to which we have to suffer losses and we have to pay monthly GST.”

Secretary of Federation of Chakan Industries, Dilip Batwal said, “The main concern for us is that the politicians do not cooperate with us. Along with it, the electricity bill has increased and there is no ease of doing business these days as the policies are not being implemented properly.”

EXPECTATIONS
- GST system should be feasible (quarterly tax payments)
- Proper infrastructure with road connectivity should be provided
- Development of rural area
- Airport should be developed at Chakan
- The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, should be stressed upon and implemented properly.
- Policies should be liberal to boost employment and ease of doing business.

- More than 6,000 small scale industries operating in Pimpri-Chinchwad along with some parts of Pune with over two lakh employees.
- Types of small scale industries: Engineering, Rubber, Plastic, Automation, Chemical, Surface Treatment, Plating and Powder coating.
- Small scale industries are situated in MIDC, Pimpri-Chinchwad, Bhosari, Talwade, Chakan, Ranjangaon and Shikrapur.
- Contribute almost five per cent considering the whole country in terms of size of industry

CITIZENS REACT
As the Lok Sabha Election 2019 is approaching, different communities from the city share their feedback regarding the current government and voice the issues they want the new government to address.

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