LUDHIANA: After the Goods and Services Tax Council deferred the hike in GST rates for the textile and garment business, local industrialists now want the GST on scrap to be reduced from 18 to 5 per cent.
The industrialists had raised this demand a few months back, when they had also requested the state finance minister. Manpreet Singh Badal Trying to persuade the central government to reduce GST. Traders argue that this deduction will curb fraudulent billing that harms genuine traders. Induction Furnace Association General Secretary of North India Dev Gupta Said: “The GST Council took a major decision when it deferred a hike in GST on textiles and clothing from 5 to 12%. In comparison, the tax on scrap is 18%. If they reduce it to 5%, then The government will get several hundred crore rupees more in revenue.”
Gupta claimed that: Once the GST on scrap is fixed at 5%, it will put a complete stop on bogus billing and, consequently, increase in revenue.” Supporting his views, the Fastener Manufacturers Association of India President Narinder Bhamra Said: “The current rate of GST on scrap is 18% while on many other input components, it is 5%. Organized gangs use this difference of 13% to do bogus billing, show fake sales and claim bogus input tax. Invoices are used for purchase. Credits from the GST department, while honest businessmen also come under the radar.”
Bhamra said that in some cases, despite buying junk, traders get a bill that there are fake suppliers somewhere down the supply chain, so the genuine traders are punished by the department even for no fault of theirs. Hence we request the Industrialists of Ludhiana GST Council to reduce the tax on scrap to 5%.”
The industrialists had raised this demand a few months back, when they had also requested the state finance minister. Manpreet Singh Badal Trying to persuade the central government to reduce GST. Traders argue that this deduction will curb fraudulent billing that harms genuine traders. Induction Furnace Association General Secretary of North India Dev Gupta Said: “The GST Council took a major decision when it deferred a hike in GST on textiles and clothing from 5 to 12%. In comparison, the tax on scrap is 18%. If they reduce it to 5%, then The government will get several hundred crore rupees more in revenue.”
Gupta claimed that: Once the GST on scrap is fixed at 5%, it will put a complete stop on bogus billing and, consequently, increase in revenue.” Supporting his views, the Fastener Manufacturers Association of India President Narinder Bhamra Said: “The current rate of GST on scrap is 18% while on many other input components, it is 5%. Organized gangs use this difference of 13% to do bogus billing, show fake sales and claim bogus input tax. Invoices are used for purchase. Credits from the GST department, while honest businessmen also come under the radar.”
Bhamra said that in some cases, despite buying junk, traders get a bill that there are fake suppliers somewhere down the supply chain, so the genuine traders are punished by the department even for no fault of theirs. Hence we request the Industrialists of Ludhiana GST Council to reduce the tax on scrap to 5%.”
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