Fan Manufacturers Want GST To Be Lowered To 5% From 18%
Indian fan manufacturers on Thursday sought lower Goods and Services Tax rate at 5% on fans, saying the existing 18% tax is "adversely" impacting the industry.
The lower GST slab would make the fans a promptly accessible commodity for everyone by increasing grass-root level penetration, exceptionally in rural India, the Indian Fan Manufacturers Association said in a statement after its virtual Annual General Meeting.
The fan industry lost around 35% of its annual sales due to the outbreak of Covid-19 this year during the peak sale period, causing huge financial losses for fan companies, said the association.
"The current GST rate standing at 18% is adversely impacting the industry as well as the entire supply chain, from distributors to end-consumers," said IFMA chairman Atul Jain.
With income levels shrinking, the current GST rate on fans might result in consumers avoiding making any purchases, the IFMA said.
"So, reduction in GST rate will make this common man's product more easily accessible to all common man, as well as commercial, industrial and home users," it said.
IFMA represents over 500 fan and component manufacturing entities, having a distribution network of more than 1.5 lakh retail outlets.