WIEM appeals for lower GST on certain electrical products

The electrical switch & wire manufacturing industry in Western India has appealed to the GST Council to lower the Goods & Service Tax on certain electric items to 12 per cent from the proposed 28 per cent.
The Western India Electrical Accessories Manufacturers Association has submitted a memorandum to the government to review the proposed GST rate of 28 per cent on electrical apparatus not exceeding 1000 Volts and bring it down to 12 per cent, its President Ashok V Maru said in a statement here.
The electrical accessories industry, which contributes around Rs 50,000 crore annually to the economy, mainly comprises small scale manufacturers of electrical switches and accessories as well as micro scale manufacturers.

As per the proposed GST rates, 18 per cent will be levied on electrical apparatus for switching or protecting electrical circuits and 28 per cent on electrical apparatus for electrical circuits like switches, relays, fuses, surge suppressers, plugs, sockets and lamp holders.
The proposed rates of GST for electrical apparatus not exceeding 1000 Volts, which has been placed in the highest tax bracket of 28 per cent meant for luxury goods or non-merit goods, has left the entire electrical apparatus manufacturing industry in a deep gloom, Maru said.
The government's move will virtually ensure that small and very small units manufacturing these goods will be wiped out, he added.