But at the exact time businessmen are demanding that the GST on automobile components need to be reduced by 10%, which is their extensive pending demand and the superior fee of 28% GST is leading to big problems for them like superior price tag of manufacturing. Aside from, a big sum of revenue also receives stuck in GST refunds with the taxation department.
Speaking to TOI, Gurpargat Singh Kahlon, president of the Automobile Pieces Makers Association (APMA), said, “Recently a proposal has been presented by many Union ministers to cut down 28% GST applicable on automotive sector by 10%, which implies that two-wheelers and four-wheelers will become less costly and there may possibly be surge in their demand. But it’s unlucky that there has been no assurance from anyone on the reduction of GST on automobile components, which also is 28 per cent and from 2017 we have been demanding its reduction as it is the maximum slab less than GST.”
Kahlon extra, “Due to such superior fee of tax not only our price tag of manufacturing has risen sharply at any time given that it was imposed, but our investments also have elevated in business. Above and previously mentioned this big sum of revenue also receives blocked as GST refund with the taxation department and we are unable to bear this monetary load. As a result, we request the central government to not dismiss the automobile components suppliers and cut down GST on our field as nicely alongside with the reduction on vehicles.”
According to OP Kapoor, general secretary of APMA, “Auto components suppliers of Punjab have been suffering for a extensive time, to begin with owing to demonetisation our field experienced a serious blow. Afterwards, when GST was imposed on us, we were saved in the maximum slab of 28%, whereas there are some sectors wherever only 5% GST was levied. Blended with this the superior fee of electricity and now the labour scarcity are killing our field. The only key reduction which can establish to be a gamechanger for us is if the GST on our field is reduced from 28% to eighteen%. With the 10% reduction there will be considerably less capital included and most importantly it will lead to big reduction in the price tag of automobile components, which will give a thrust to our field. As a result, we request the Centre and GST council to cut down GST on the automobile components as nicely in addition to lowering the exact on vehicles.”
According to Nitin Sharma, a further automobile components manufacturer, “I feel alongside with reduction of GST on the automobile components by the centre government, our point out government need to also play its job in uplifting of the automobile components producing field. The most fast reduction which can be presented to us by Punjab government is the reduction of fee of electricity to Rs. 5 for every device which at this time is pretty much double. If each GST reduction of 10 per cent and electricity tariff reduction are carried out then there will be significant boom in our industry”