MADURAI: The food processing export sector has achieved tremendous growth from 13% to 23% over a period of nine years, according to experts from the domain. Agro products exports also surged to Rs 4 lakh crore this year, S Rethinavelu, president, Agro Food Trade Centre (AFTC), Madurai said on Saturday.

Food processing is the “Sunrise Sector” of India’s economic development and the Centre’s initiatives in the field of agriculture are motivating the farmers to venture into startups and small business units of agro products and also into exports, sources said.

But the MSMEs sector’s growth was greatly affected by the confused implementation of the GST Act and Rules, according to sources. The compliance cost of this taxation law is prohibitive. Some lower level GST officials, who’re mostly without proper understanding of the provisions of GST Act and Rules, were issuing notices demanding huge amounts by way of tax and penalty necessitating the trade to consult the tax experts again at enormous costs, the industrial leaders lamented. Many traders are driven out of business because of these issues, Rethinavelu said.

In order to make the GST implementation smooth and user friendly, the second generation reforms, called GST 2.0 should be finalised in consultation with the trade and industry, it has been demanded. Powers should be given to traders to take necessary legal action against unscrupulous enforcing officials, who issue notices purposely and without knowledge of the provisions of the Act and Rules harassing the traders creating mental stress and financial loss to them, Rethinavelu said.