17.04.2023: Auto parts industry seeks reduction of GST

The auto parts manufacturing industry of Ludhiana has once again raked up the demand for reducing the 28% GST applicable on several articles being manufactured by them. According to the businessmen, the high rate is leading to the blockage of their funds with the taxation department in the form of GST. They are of the view that if the rate of GST is reduced to 12% for all the categories of auto parts, the tax revenue of the government will increase.

Gurpargat Singh Kahlon, president of, Auto Parts Manufacturers Association said, “Ever since 2017, growth of the auto parts manufacturing industry of Ludhiana has come to a standstill, for which a major reason is the high rate of 28% GST on a lot of our products. Due to this, a large amount of our money gets stuck with GST departments in the form of Input Tax Credit (ITC).” Kahlon added that they have sent a memorandum to the state finance minister Harpal Singh Cheema, urging him to raise the matter with the centre and fix a common slab of 12% for the auto parts industry. Nitin Sharma, executive member of Auto Parts Manufacturers Association, said it would enhance government revenue.

Source: The Times of India 

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