Coimbatore MSMEs urge government to reduce GST on job work

Business Sep 06, 2025

Small engineering businesses in Coimbatore are asking the government to cut GST on job work services from 18% down to 5%.
The recent hike from 12% to 18%—which covers things like machining, welding, bending, cutting, or surface preparation—has hit them hard.

Local industry groups warn of potential order shifts

For many micro units, this tax jump means higher costs and slower payments.
J. James from the Federation of Coimbatore Industrial Associations explained that small firms can't claim input tax credit, so their cash flow gets squeezed for months: The 18% GST ties up working capital for 90-120 days.
Local industry groups warn that if nothing changes, orders could potentially shift to cheaper regions and thousands of MSMEs in Coimbatore might struggle to survive.