[vc_row][vc_column][vc_column_text]A more flexible approach is needed from the Government to ensure smooth transition and gain acceptability among Industry: PIA President
The Hon’ble Union Minister for Micro, Small and Medium Enterprises (MSME) Sri Kalraj Mishra has said that requests for revising the tax rate on certain items under the GST will be taken up before the GST Council, for a review.
This follows demands from certain industries for revision of tax rate on certain items under the Goods and Services Tax (GST). The Union Minister has asked for written representations from different industries and these are likely to be tabled in the upcoming meeting with the GST Council.
Since the implementation of the GST from 1st July, different sectors have raised concerns over the placement of items under a higher tax slab.
Appreciating the positive response from the Minister, Sri R. Krishnamurthy, President, PIA, said notwithstanding the exhaustive exercise taken by the Finance Ministry preceding the rollout of the GST, there would still be a need for revisiting some of the tax rates prescribed. “Consultations are only one part of the preparatory work. The Centre has to be open to demands by certain industries so that we can help ensure a smooth rollout.
For example, the rubber wood based plywood manufacturers and the textile industry in particular have expressed their serious apprehensions about the tax rate fixed for them.
We appeal to the representatives of the GST Council to not see it from the limited perspective of revenue generation and look at ways to address the concerns of all the industry sectors so as to take them along for only this will in the long run ensure the success of the GST,” he said.
The textile industry has been continuing its protest demanding rollback of the GST. In the case of the rubber wood based plywood manufacturers, their complaint is that their item has been placed under the 28 per cent tax rate under the GST while earlier the plywood manufacturing units did business by paying 2 per cent for the central sales tax as these units had an annual turnover less than Rs 1.5 crore.[/vc_column_text][/vc_column][/vc_row]
