Dilemma over GST levy on sewing machine prevails
Manav Mander
Tribune News Service
Ludhiana, September 19
Different rates of the GST on sewing machine and sewing machine parts have created dilemma among traders and manufacturers. Although the act mentions only 12 per cent of the GST but since it does not mentions the word ‘sewing machine parts’ as it has lead to charging of 18 per cent on sewing machine parts by some manufacturers.
The government, in the past had clarified that the rate of tax on sewing machine and sewing machine parts will be same at 12 per cent, but still some large scale manufacturers are charging it at 18 per cent giving a tough time to the small scale manufactures and dealers.
Varinder Rakheja, ex-president of Sewing Machine Dealers and Assemblers Association, said their business is on the crossroads due to two rates of the GST being imposed. “It has been cleared by the government that the rate on finished parts and sewing machine is 12 per cent but still 18 per cent is being charged. The other disturbing fact is that after July 11, even the custom department is doing clearance at 18 per cent,” he said.
Adding further Mohinder Singh, president of the association, said that it has been more than two months and the GST Council has still not been able to clarify the rate of taxes. Earlier, the custom department was giving clearance at 12 per cent, and now it is imposing 18 per cent GST. “There is utter confusion and our sales are already going down after the GST and this confusion has only added to our woes,” he said.
In the gazette only sewing machine has been mentioned and sewing machine parts word is missing and all this confusion has been created due to this. The GST council should include sewing machine parts under the code 8452 (sewing machine code in GST Act).
Rakheja further added that the industry was paying 5.5 per cent of VAT on sewing machine and now the rate of tax under the GST has been increased to 12 per cent which is not fair.
