Chennai: Demonetisation and GST have adversely affected Guindy and Ambattur Industrial estate areas. The small and medium scale industries have frozen recruitment and are delaying the salaries due to debts and poor business, admit Industry sources. According to Ambattur Industrial Estate Association sources, the business of small and medium industries had affected by more than 20 percent resulting in a delay of payments. With the invoice and bill settlements pending since June, the payment of salaries had also got delayed for employees. And the situation is yet to stabilise, sources said.
“It’s close to two months since the implementation of GST and the financial situation continues to be in a grim state. Strikes and protests from various sectors continues as GST affects the industry and common man”, said All India Manufacturers Organisation national president K. E. Raghunathan. We have already warned the Centre about the effects of GST implementation but no respite. Further the online portal introduced for GST has added to the existing chaos, he said.
“There is a confusion on filling up reverse tax remittances, payment of tax on advances received and there is a widespread misconception as to what details to be furnished with respect to non-GST supply and further there are no clear instructions in the GST portal on filling up of details”, he explained.
Due to the traffic congestion and inability of the users to pay online and submit data the centre had extended the last date for filing to August 25 from August 20. Now, the issues have become much more than anticipated, he added.
“I have three godowns in Ambattur all rented to manufacturing units. All the tenants have been delaying the rent payments since April explaining that their business had affected due to demonetisation and GST”, said K. Narayanan of Ambattur.
