<p data-path-to-node="6">The Coimbatore District Small Industries Association (CODISSIA) has submitted a formal appeal to the Union Government seeking relief under the Integrated Goods and Services Tax (IGST) framework for essential tooling equipment including moulds, dies, and patterns used by Micro, Small, and Medium Enterprises (MSMEs) manufacturing castings for overseas markets.</p><p data-path-to-node="7">Industry representatives highlighted that MSME units frequently procure specialized moulds, dies, and patterns to meet precise international client specifications. Under the current tax structure, the payment of IGST on these tooling inputs locks up critical working capital, increasing overhead expenses and adversely affecting the price competitiveness of Indian foundries and engineering exporters in global markets.</p><h1><b data-path-to-node="8" data-index-in-node="0">Key Concerns Raised by Industry Representatives</b></h1><ul data-path-to-node="9"><li><p data-path-to-node="9,0,0"><b data-path-to-node="9,0,0" data-index-in-node="0">Exemption under IGST Provisions:</b> CODISSIA has urged the government to introduce specific provisions or duty waivers under the IGST mechanism for export-oriented tooling, eliminating upfront tax burdens on equipment directly tied to export contracts.</p></li><li><p data-path-to-node="9,1,0"><b data-path-to-node="9,1,0" data-index-in-node="0">Working Capital Pressures:</b> MSME foundries operate on tight operating margins. Prolonged refund cycles and heavy input tax credit accumulation on capital goods strain liquidity, restricting small units from scaling production.</p></li><li><p data-path-to-node="9,2,0"><b data-path-to-node="9,2,0" data-index-in-node="0">Dialogue with Union Ministry:</b> During high-level discussions with officials from the Union Ministry of MSME in New Delhi, industry delegates outlined operational bottlenecks faced by engineering clusters and called for targeted administrative reforms to enhance the ease of doing business.</p></li></ul><h3 data-path-to-node="10"><b data-path-to-node="10" data-index-in-node="0">Industry Impact</b></h3><p data-path-to-node="11">Coimbatore is one of India’s premier precision engineering and foundry hubs, supplying critical automotive, industrial pump, and heavy machinery castings worldwide. Industry leaders emphasized that providing tax relief on foundational tooling will not only level the playing field against low-cost overseas competitors, but also empower domestic MSMEs to capture a larger share of global supply chain demand.</p>