GST council relief for city industrial units

Shivani Bhakoo

Tribune News Service

Ludhiana, July 22

The Goods and Service Tax (GST) council has announced slashing of the GST rates on approximately 50 items, providing respite to the consumers. At the same time, businessmen here feel that the government will benefit as it has clipped wings of those who were generating fake bills to get the GST return.

Badish Jindal, president of the Federation of Punjab Small Industries Association (FOPSIA), said they all were waiting for the notification regarding slashing of the GST rates, which would be issued around July 27.

“It is a good initiative taken by the government to slash the GST rates. Consumers will definitely get some respite. But more than the consumers, the government will be benefitted. For example, many bicycle manufacturers here were getting bogus bills of paints, enamels on which the GST was 28 per cent. But now there will be a little chance to dupe the government agencies. The government has watched its own interests by slashing the rates,” said Jindal.

He said the system would be streamlined and misuse of input tax credit would also be curtailed.

Consumers happy

The consumers have expressed happiness over the recent announcement on slashing the GST rates. Karuna Garg, a college student, said she was shocked to learn about the GST on sanitary napkins. “Though, it hardly makes any difference for masses belonging to rich or upper middle class, but for meagerly paid, a few bucks matter a lot. On one hand, we are promoting health and hygiene, while on the other we are imposing the GST on sanitary napkins. It is good that sanitary napkins are exempted from the tax ambit now,” she said.

Input tax credit welcomed

Meanwhile, another announcement of input tax credit on textile industry has been welcomed by garment manufacturers. Ajit Lakra of Superfine Industries here said garment manufacturers would get refund and the capital amount would not get stuck. “We will have liquid cash in case we get regular input-tax credits by the government. We will be able to build working capital and do businesses in a more smoother manner,” he said.