In poor health, fasteners seek GST rate cut

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The fastener manufacturing industry in Ludhiana, which is already going through tough times due to recession in the automobile sector, has demanded reduction in GST applicable on fasteners. The fasteners are taxed under 28% when billed for use in auto parts and 18% otherwise. The businessmen wanted the GST rate to be brought down to 12% to give relief to the ailing industry. Rajkumar Singla, president, Fastener Suppliers Association, Ludhiana, said, “There are two rates of GST on fasteners. The products meant for auto sector are being taxed at 28% and while others have to pay 18% GST. The 28% GST rate is totally illogical and has hampered the growth of our industry.” “Despite repeated reminders to the Union government and GST council, nothing has been done so far in this direction.

With the situation getting worse, fastener industry will be destroyed if the GST is not reduced to 12%.” Munish Sachdeva, general secretary, Fastener Suppliers Association, said, “Our industry is passing through a turbulent phase as we have been forced to cut our production by more than 50% and orders are dropping further. We request the GST council to slash the GST rates to one single rate of 12% so that we can get a bit of relief. The reduction will also bring down the rates of the products and lead to increase in the demand as well” Pankaj Aggarwal, finance secretary, Fastener Supplier Association, “Reduction of GST to 12% is need of the hour. Due to high rate of tax, a huge amount of our refunds are stuck with the GST department and even a slightest of delay causes a lot of problems like fund shortage.”

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