 "Electrical accessory firms seek 12% GST levy, not 28%")
The Western India Electrical Accessories Manufacturers Association has appealed to the GST Council to lower the goods and services tax on electrical equipment from the proposed 18-28 per cent to 12 per cent.
The Centre has proposed 18 per cent on switches, fuses, lighting arresters, surges, etc, and 28 per cent on electrical apparatus for switching or protecting electrical circuits like switches, relays, fuses, surge suppressers, plugs, sockets and lamp holders. Ashok V Maru, president of the association, said, “The proposed rates of GST for electrical apparatus not exceeding 1,000 volts has left the entire electrical apparatus manufacturing industry in deep gloom. This move will virtually wipe out the electrical accessories industry.”
Almost 95 per cent of such units are of small scale and do not pay central excise duty. But this sector contributes Rs 50,000 crore to the economy. The GST has to be paid on issue of invoices or receipts of payment, whichever is earlier, against the exiting VAT payment on sale of goods.
The Centre has proposed 18 per cent on switches, fuses, lighting arresters, surges, etc, and 28 per cent on electrical apparatus for switching or protecting electrical circuits like switches, relays, fuses, surge suppressers, plugs, sockets and lamp holders. Ashok V Maru, president of the association, said, “The proposed rates of GST for electrical apparatus not exceeding 1,000 volts has left the entire electrical apparatus manufacturing industry in deep gloom. This move will virtually wipe out the electrical accessories industry.”
Almost 95 per cent of such units are of small scale and do not pay central excise duty. But this sector contributes Rs 50,000 crore to the economy. The GST has to be paid on issue of invoices or receipts of payment, whichever is earlier, against the exiting VAT payment on sale of goods.
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