GST blues: Tamil Nadu textile hub fears 20-30% MSMEs may shut shop

Tirupur's textile industry is worried about the 18% GST rate set on services

Tirupur, a textile hub in southern Tamil Nadu, is worried about the 18 per cent Good and Services Tax (GST) rate fixed for different segments in the production chain. This will put pressure on the working capital of the job working units, forcing them to exit the business eventually and affecting the entire industry.

The sector expects at least 20-30 per cent of the city's units to close down due to practical difficulties. Tirupur's textile industry does business worth over Rs 50,000 crore every year, including revenue earned from exports. The industry also employs over 1,000,000 people.

Raja M Shanmugham,