State to lose Rs 2K-cr: Chit fund owners blame GST increase

TIRUCHY: Tamil Nadu will lose around Rs 2,000 crore due to the increase in GST for chit funds, said the TIruchy district Financiers and Chit Fund Association president M Thangavelu here on Saturday. Speaking to reporters, Thangavelu said, the hike in GST would come into effect for the chit funds from July 18. There are 2,600 chit fund firms functionin in Tamil Nadu and the union government has fixed a target of collecting GST from the firms. “So far the firms which roll Rs 28 lakh chit does not come under the GST and the fund from Rs 80 lakh had a minimal GST but now, the 6 percent GST has been increased to 12 per cent while 12 percent GST has been increased to 18 percent. The chit fund firms can not function like banks which need at least Rs 100 crore investment. We just collect the amount from the public and pay the GST and so the increased GST should be withdrawn”, said Thangavelu.