Coimbatore MSMEs Hope for Lower GST Rates
Micro, Small and Medium Enterprises (MSMEs) in Coimbatore have raised concerns over the impact of high Goods and Services Tax (GST) rates on their operations. Manufacturers and suppliers in sectors such as textiles, foundry, engineering tools, and pump sets argue that current tax slabs have increased input costs and reduced profit margins. Many also point out that complicated compliance requirements add to the burden, leaving smaller firms at a disadvantage compared to larger corporations.
Push for Simplified GST Structure
The Finance Ministry has recently proposed a major overhaul of the GST system by introducing a simplified two-slab structure. Under this plan, most goods and services would fall under two principal rates, while only a small list of items would continue under special categories such as luxury or sin goods. This shift, expected to be rolled out by Diwali, is being viewed as a step toward reducing compliance pressure and providing relief to businesses. Experts believe this will particularly help MSMEs that often struggle with complex multi-slab taxation.
Implications for Coimbatore MSMEs
For industries in Coimbatore, a reduction in GST rates could significantly lower production costs and improve competitiveness in both domestic and export markets. Sectors such as machine tools, auto components, and pumps—where Coimbatore has a strong presence—stand to gain from lower raw material taxes and simplified structures. Industry associations have welcomed the government’s move, while also urging policymakers to keep MSME realities in mind when finalising the slabs.
Looking Ahead
Although the reform proposal has sparked optimism, business leaders remain cautious. They emphasise that actual benefits will depend on how the slabs are structured and implemented. For now, Coimbatore’s MSMEs are hopeful that the new GST regime will ease their financial stress and help them expand sustainably.
