With the implementation of the Goods and Service Tax (GST) taking a big toll on the sale of tea leaves in the Nilgris District, more than forty lakh kilos tea leaves has been stocked up in the District because of dip in sale.
According to the Industrialists from the district, the worth of the stocked up product would easily cross Rs. 30 crores. The members of the industrial community have said that procedures in the sale of tea leaves, including the auction has not been fruitful eve since GST was implemented on the midnight July 1st.
“There are many practical difficulties in procuring tea leaves in the auction centres in Coonoor, which are the major centres in the District. There are confusions in providing receipts and vouchers between the industrialists and intermittent brokers, hence no one is coming forward to procure tea leaves,” said an industrialist.
He further added that the issue has also affected the economy of the District. Further, industrialists have decided to not procure fresh and unprocessed tea leaves until the 21st of July.
Claiming that district’s economy would come to a grinding halt if the Government does not intercede sooner, the members have urged the Government to help them in any way possible.