LUDHIANA: In the wake of recession, auto parts manufacturers in the city are a worried lot. Sales of their products have been hit due to decrease in the demand. On the other hand, their GST refunds have been delayed.
According to businessmen, the union government should swing into action and reduce the GST on auto parts to 18 per cent which is 28 per cent presently.
Gurpargat Singh Kahlon, president of the Auto Parts Manufacturers’ Association (APMA), said: “The problem of recession is increasing day by day in auto parts manufacturing industry and this is directly related to the slowdown in the automobile sector. We have already cut down our productions to cope up with the fall in demand of auto parts which has registered a sharp decline since July. However, this too can be tolerated by us, but high rate of GST on our industry, which is 28 per cent, has become a serious issue for our industry which needs immediate attention of the Centre.”
“High rate of GST means a huge amount of money of each auto parts manufacturer remains pending with the tax departments as GST every month. Moreover, refund processing too has slowed down which is causing hurdles. We request the central government and the GST council to slash the rate of GST on auto parts from 28 to 18 per cent as this will not only boost the demand of the products, but will also reduce our problems of fund blockage,” he said.
Swinder Singh Hunjan, an auto parts manufacturer, said: “28 per cent GST has become a serious problem for our industry and if this is sorted, our industry will be able to battle recession easily and the reduction is also for the betterment of our industry in the future.”
Nitin Sharma, another auto parts manufacturer and member of the APMA, said: “We are battling recession and on the other hand we are running to get back our own money stuck as GST refunds. Though the delay in the processing of refunds might not be a big issue for every auto parts manufacturer, but the high rate of GST i.e. 28 per cent is the problem for everyone. Therefore, the government must realise the gravity of problems being faced by the auto parts manufacturing industry and reduce the rate of GST to 18 per cent so that we get the much awaited relief.”
Source- Times of India.