Indian Industries Association (IIA) – the apex representative body of Micro, Small and Medium Enterprises (MSME) in consultation with more than 7000 MSME members carried out a detailed study on the GST rates announced by GST Council for Goods and Services. The study revealed that there are several anomalies / discrepancies / problems with the GST rates announced which need to be corrected mainly in the interest of environmental friendly and agro based industries.
Accordingly IIA submits representation to chairman GST Council along with suggestions for correcting the situation. Few of the recommendations are that keeping in view the need for promoting sports and fitness of Indian citizens for making a strong India, all sports goods items should either be exempted or should be kept at 5% GST rate the maximum. Sports goods in GST are kept under three different high rate slabs that is at 12%, 18% and 28%.
IIA has pleaded for promotion of sports, environment friendly and agro based industry by keeping GST Rates at lower slabs. It has pleaded to keep environmental friendly aluminum door’s, window’s, frames & thresholds which are placed in 28% GST rate slab by the GST Council to be kept at 18% GST rates to save trees and promote this industry. Similarly, IIA have proposed to GST Council that ‘Fly Ash Bricks and Product’ should also be kept at 5% GST rate to promote this environmentally friendly industry.
It said that Mentha industry is main industry of UP, earning foreign currency and involves a lot of farmers and small scale industries. From the begining, it was proclamation by the Centre that GST rates in tariff will not increase in comparison of present rates. VAT applicable on Mentha oil is 5% and excise duty is nil at present. Now GST rate 18% has been announced on Mentha oil and its products under Chapter 30.
“This is against the interest of thousands of farmers and micro units in the country. As such IIA have recommended that GST Rates on Mentha oil and Menthol should be kept at 5% only”, said the members.
Source: Times of India
