Not so long ago, India celebrated 100% electrification of villages. A great feat indeed considering the fact we are a fairly developing nation with a robust GDP. But how about the basic necessities that make life a real pleasure in villages and small towns. Apart from the mesmerizing countryside, Fans remain a strong luxury item across villages and towns in India.
Hence Indian Fan Manufacturers Association (IFMA) call for a reduction in current GST rate on Ceiling and movable Fans seems a fair demand at the very outset. Presently, under the new indirect tax regime fans are taxed at 18% GST.
Keeping the Indian tropical summer in mind the IFMA has requested a reconsideration of the same and levy of 12% GST so that the luxury can be afforded by one and all in the budget-driven Indian Society.
Vice-chairman of IFMA Atul Jain said, “We have been informed by the GST Council that our representation has been forwarded to the Fitment Committee for their views and reconsideration”. He also informed that IFMA was working in conjunction with Bureau of Energy Efficiency, Energy Efficiency Services Limited and Bureau of Indian Standards to deliver energy efficient fans that will provide relief against the soaring tropical sun without being hard on the Indian Consumers pockets.
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Reportedly, the IFMA has already submitted representations to the GST Council seeking a downgrade in GST slabs from 18% to 12%. While the organized consumer sector records manufacturing of 54 million fans per year, the unorganized sector records production of 20 million fans.
