Sunday, June 13, 2021
Home News Reports Industry bodies reject Rahul Gandhi’s demand for GST waiver on COVID-19 related equipment, say...

Industry bodies reject Rahul Gandhi’s demand for GST waiver on COVID-19 related equipment, say they don’t need any exemption

Industry bodies clarified that they have not asked for an exemption from the GST on their products used to fight Coronavirus

Former Congress President Rahul Gandhi was once again caught shooting himself in the foot. In yet another attempt by him to win over the estranged MSME sector which has traditionally aligned itself with the Modi government, the Wayanad MP posted a tweet demanding the government to relinquish the GST, IGST and Customs Duty on the essential products to combat the novel coronavirus. The Gandhi scion had asked the government for a GST waiver for the MSME organisations who have been involved in the production of important equipment such as masks, personal protective equipment (PPE) and other vital things critical to the fight against the Wuhan Coronavirus.

However, the Textile MSMEs and councils rejected the demands made by Rahul Gandhi on their behalf, stating they are manufacturing the crucial safety equipment such as PPE for India’s healthcare professionals and they have not asked for an exemption from the GST on their products from the government.

The Apparel Exports Promotion Council issued a tweet saying “The AEPC manufactures-exporters are making PPEs for our Health Professionals who need all our support at this hour of unprecedented crisis. Hence, they do not mind paying GST on these products and have not requested this exemption from the Government.”

One of the Textile MSMEs, JCT Textiles Limited, slammed Rahul Gandhi saying it is grateful to the government for all the support that has been extended to him and have not asked for any GST waiver from the government. “JCT Textiles pioneered the first indigenous PP Hazmat Suit and is honoured to supply to the MoHFW. We are grateful to the Government of India for all support and have not asked for any waiver of GST,” they said.

While Gandhi attempted to score brownie points with the MSME sector with his demand for a GST waiver for the organisations involved in the manufacturing of the vital equipment necessary to battle coronavirus, it appears that the Gandhi scion has not taken a cue from the catastrophic consequences of the government’s mistake of giving in to misplaced activism and exempt sanitary pads from the GST. If the government exempts all the COVID-19 related equipment from GST, all the input taxes payable on raw materials used for manufacturing of the equipment such as masks and PPEs, won’t be eligible to claim Input Credit. Consequently, the local manufacturer would add it to the cost of the finished product which would ultimately be paid by the consumer. This would make locally manufactured coronavirus equipment more expensive for consumers.

How exemption of sanitary pads from GST had spelt disaster for the manufacturers

Soon after the misplaced activists ran a campaign demanding exemption of sanitary pads from the GST, the government impetuously gave in to the popular demand and exempted sanitary napkins from GST. However, the move did not augur well for the napkin manufacturers. Before long, the manufacturers hiked their base price. They complained that the cost of production of sanitary napkins had gone up because of the move by the government. They said that since the raw materials like wood pulp, adhesive, release paper, packing material and other commodities are taxed at 12%-18%, they end up paying GST, but it won’t be refunded in the form of input tax credit since the end product has become tax-free. The manufacturers increased their base price in a bid to offset the hiked cost and the fact that they were getting no input credit owing to napkins being exempt from GST. In the end, the end product, i.e sanitary napkins, ended up becoming more costlier than they already were without the exemption.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

PM Modi kills the manufactured stories about his rift with Yogi Adityanath with just three words

In a rare gesture, PM Modi publicly praised Yogi Adityanath for a scheme amid the manufactured reports about rift between the two

Indian embassy in Turkey shuts up Turkish state-run publication for peddling Pakistani propaganda against India

State-run news agency of Turkey publishes Pakistani propaganda saying India issuing fake domicile certificates in Kashmir

Mumbai: Video of a car sinking in a hole within seconds goes viral after incessant rains. Watch

The car has been pulled out with the help of a crane from the 40 feet deep well and no injuries have been reported.

Punjab Elections 2022: As political landscape warms up, will Dalit votes be the game changer?

After breaking off the alliance with the Shiromani Akali Dal, the BJP has nothing to lose in the upcoming Punjab Assembly elections. How will the politics play out as elections draw close

Culture of political violence in West Bengal: How the Islamist challenge can turn an already very bad situation into much worse

The outbreak of political violence in West Bengal since Mamata Banerjee's victory shows no signs of abating.

How a ‘liberal’ filmmaker went from criticising Rahul Gandhi to saying ‘I am on your side’ and what it shows

Congress and their loyalists are still not able to get over the shock of not only losing 2019 elections, but BJP outperforming them and itself from the previous term.

Recently Popular

Leaked Clubhouse chats: Here is what senior Congress leader Digvijay Singh promised to a Pakistan-origin journalist about Kashmir

During conversation with a Pakistani-origin journalist on Clubhouse app, Congress leader Digvijay Singh promised to reinstate Article 370

‘Decline is on’: Pakistanis furious after Saudi Arabia eases ‘guardianship rules’ for women

Saudi Arabia has allowed single, widowed, and divorced women to stay independently without the prior approval of male guardian

‘Scientists were threatened Anthony Fauci and his gang will destroy careers and reputation’: Indian experts make explosive claims after emails become public

Anthony Fauci has found himself in the eye of the storm after thousands of his emails were revealed to the world.

How a ‘liberal’ filmmaker went from criticising Rahul Gandhi to saying ‘I am on your side’ and what it shows

Congress and their loyalists are still not able to get over the shock of not only losing 2019 elections, but BJP outperforming them and itself from the previous term.

Honour killing of Pakistani girl in Italy: Victim’s cousin arrested in France, parents who fled to Pakistan and two other missing accused wanted by...

Ikram Ijaz, one of victim Saman Abbas’ cousins, was arrested in Nimes in France and was later handed over to Italy

India not to allow return of four Kerala-based women who had joined Islamic State, at least 3 of them are converts: Details

Indian Govt is unlikely to allow four women from Kerala who had left to join Islamic State in Khorasan Province (ISKP).
- Advertisement -

 

Connect with us

255,564FansLike
552,835FollowersFollow
24,300SubscribersSubscribe