Entrepreneurs who are in the business of scraping and marketing metal products including iron, they said that their business is currently in a state of paralysis due to GST and surprise checks and demanded immediate flow of services, including tax reduction and subsidy.
Coimbatore: Entrepreneurs have expressed anguish that the metal scrap industry, including iron, is in a state of paralysis due to GST and surprise checks.
In Coimbatore, small scale industries, which scrap and market metals, including iron, are taking place on a large scale. Thousands of people are involved in this business of scraping and marketing vehicles, machines and sachets for recycling after use.
The annual general body meeting of entrepreneurs engaged in this industry was held in Coimbatore. The meeting discussed the crisis in the scrap industry and the next move.
Speaking on the occasion, the executives said that the iron traders are facing various problems. In the name of testing, the GST officials within our company are conducting raids. This has hindered the growth of the industry. The increase in goods and services tax has affected the industry.
The tax rate, which was earlier 4 per cent, has gone up to 18 per cent after GST. Due to the increase in taxes, it has not been able to make a profit due to additional expenses. Since concessions are being given only to big companies, small and medium enterprises do not get any concessions.
Similarly, if the iron scrap comes in trucks, they are putting pressure on where it came from. We are shedding tears of blood because of this. Subsidy is given for business up to Rs 40 lakh. But the prices of metals, including iron, have skyrocketed.
Therefore, they have demanded subsidy for businesses up to Rs 5 crore. Due to such a crisis, 70% of small and medium scale industries and iron traders have shut down their factories. Therefore, the office bearers have requested the Union and state governments to take appropriate action.