The Indian Chamber of Commerce (ICC) along with leading dry cell battery and flashlight manufacturers Eveready Industries and Nippo has appealed to the Centre for lowering GST rates on flash lights. In a letter to the Union Finance Minister and GST council chairperson Arun Jaitley, the leading chamber has urged to bring down the proposed duty to 18% from the proposed 28% rate.

“In the light of significance of usage of LED-based flashlights (torches), including LED lamps, we seek reconsideration for reduction in GST rate of 28%, which has been approved under GST regime. We hereby would like to highlight the facts and justification for reduction of GST rates on LED flashlights,” ICC has written.

The chamber has argued that LED torches and flashlights are the sole sources of light in the remote parts of the country. “To enhance user-ship of these products, it is necessary that these are made available to the consumers at a cheaper price.” The director general of ICC, Rajeev Singh, feels that since flashlight is a mass consumption item its duty should be reduced. “More justified GST rate is good for both industry and consumer in this segment,” he added.

Eveready Industries, the leading dry cell battery and flashlight manufacturer, has also written separately to Central Board of Excise and Customs for a reduction in GST. Eveready MD Amritansu Khaitan pointed out that both batteries and flashlights consumed by majority of people in rural India. “These are mass consumption items. India consumes 50-60 million flashlights every year and 50% is in the unorganised sector. By keeping GST at 28% it would only increase price differential with unorganised sector. We are hopeful that the Centre will reconsider the rates,” he added.

An official of Nippo also agreed with the Eveready MD and said that flashlight is a rural item and GST should be down to 18%.

Source: Times of India