In a tackling situation for the members of the Jalandhar-based rubber goods industry, they are thinking of approaching the GST (Goods and Services Tax) council as they are not getting a GST refund.
The members told about their concern to the Industries Minister and Finance Minister about the refund that they are not getting and even the problems faced by the industries after the implementation of Goods and Services Tax (GST).
Rate differences on raw material and finished goods lead to issues within the supply chain and the capital, said RK Gandhi, adviser, Jalandhar Rubber Goods Manufacturer Association.
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He also said, “When the GST on the raw materials such as natural rubber is 5 percent, packing material, it is 12 percent, and on chemicals 18 percent, but on finished goods i.e. rubber footwear, it is only 5 percent”.
The manufacturers regret the fact that this difference was creating problem to their capital which is making for them to impossible to continue manufacturing for some more time.
The manufacturer explained them the problem saying that on the purchase of raw material they must get Rs 113 and get only Rs 105 on a sale of their product. Which means that the government must give them the remaining Rs 8 of Goods and Services Tax (GST) which they are not getting.
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It can be seen that from the day of implementation of Goods and Services Tax (GST) i.e. from July 1, 2017, many manufacturers of industries like- pipe fitting, rubber or others are not in a good condition.
