News & Updates » Coimbatore Compressor Industries Association appeals to Ministry to reduce tax on compressors to 12%


With ref to Coimbatore Metro - Coimbatore Compressor Industries’ Association appeals to Ministry to reduce tax on compressors to 12%

Courtesy The Hindu : 30 May 2017

GST on compressor Industry

The State Government will take steps to start works for the metro rail project for Coimbatore by next financial year, Municipal Administration and Rural Development Minister S.P. Velumani said on Saturday.


Addressing representatives of 53 traders’ associations and entrepreneurs, he said he was happy to announce the decision that the Government would take up the project next year, said a release from the district administration.


The Minister said that the Government was concerned about the problems the traders might have in migrating to the Goods and Services Tax (GST) system.


To know about their apprehensions and offer assistance, the Government had asked the Commercial Taxes Department officials to work with them.


Likewise, he told the traders’ representatives that the Government had arranged for an interaction between traders associations and the State Finance Minister on June 1 and the Chief Minister on June 2.


According to the Coimbatore Compressor Industries’ Association, the rate for air compressors has been fixed at 28 % and for borewell compressor pumps at 18 %. The Value Added Tax for these now is 5%. Hence, the association has appealed to the Prime Minister and the Union Finance Minister to reduce the tax for all compressors to 12 %.


The Kovai Power Driven Pumps and Spares Manufacturers Association had demanded uniform rate for raw materials and pumps.


The association pointed out that while the components and castings come under 18 % rate, raw materials such as wires and cables have 28 % and the rate for pumpsets is 12 %. The GST for raw materials is more than that for the end product, it said. Hence, the association sought revision of the rates.


The State Government should ensure that the Commercial Tax Department helps them migrate to GST.


The Coimbatore, Tirupur District Micro and Cottage Entrepreneurs Association has appealed to the Government to increase the exemption limit to Rs. 50 lakh annual turnover instead of Rs. 20 lakh that has been proposed now. Micro and cottage units that do job work for larger industries and have annual turnover of more than Rs. 20 lakh will now have to pay 18 % GST.


Further, the Government should not take action for a year on the micro or cottage units for lapses in submitting the required documents under GST as these units need time to learn about maintaining registers and documents.

Courtesy: The Hindu -

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