Ex-MP and BJP leader Sushil Rinku met Union Finance Minister Nirmala Sitharaman and requested a reduction in GST on auto components from 28 pc to 12 pc.
Rinku met the FM in Delhi while also inviting her to visit Jalandhar to discuss steps for upgrading the sports goods, leather, hand tools and rubber industries. He said the Jalandhar Autoparts Manufacturers Association (JAMA), representing over 100 MSME units, was operating on slim profit margins of 5-10 pc and was hence under severe stress. They face limiting their competitiveness and export viability, Rinku said.
Rinku said, “The high rate is also incentivising informal transactions, leading to revenue leakage. A reduction to 12 per cent would encourage formulisation, expand the tax base and improve compliance. Additionally, MSMEs face acute liquidity challenges as payments often exceed the 45-day limit, while the upfront tax outflow strains working capital, hindering production and delivery timelines.” The FM assured the leader to look into the matter.
Source from: https://www.tribuneindia.com/news/jalandhar/rinku-meets-fm-over-cut-in-gst-on-auto-parts/
