The department of sports has asked the Ministry of Finance to levy a constant GST of 5% upon all sports goods to motivate the manufacturing of sports goods in India. Union Minister of State for Sports Nisith Pramanik articulated, GST rates are fixed on the grounds of the suggestion of the GST Council, and the majority of sports equipment is taxed at a GST rate of 12%.
He mentioned that only some sports equipment for general physical exercise and padding pools does come beneath the GST. “Further, this ministry has been receiving representations from sports goods manufacturers seeking exemption in the rate of duty for sports goods under GST regime. The Department of Sports has requested the Ministry of Finance to make a uniform GST slab, i.e. 5 per cent, on all sports goods to encourage manufacturing of sports goods in India, he mentioned.”
Pramanik discusses the GST on sports equipment is much higher and if it is, then the process is opted to reduce it beneath the Fit India movement.
Earlier Sports Association Has Also Requested
As Government has decided on a single Taxation policy which would be between 12-18%, the Sports goods manufacturers on Wednesday demanded a GST of 5% in sync with the earlier VAT rates.
The convenor of sports industry body Khel Udyog Sangharsh Samiti (KUSS), Ravindra Dhir, said while addressing media persons in Dharamshala urged that the existing 12-18 per cent GST on sports goods should be reduced to 5%. Sports goods manufacturers demanded the lower rates and mentioned that Government had earlier promised to keep the new tax rates similar to the earlier VAT rates.
The Khel Udyog Sangharsh Samiti (KUSS) claimed that on the 1st of July when GST get implemented in India, an assurance was given by the central Government that the tax rates would not exceed the VAT rates. But now the tax rates have flung to 12-18 per cent in comparison to the VAT’s 5%.
Ravindra Dheer while addressing the media said that the situation has worsened as per the new Tax policy as 28% GST on physical fitness, gymnastics, and athletic goods and 12% GST on other sports goods is imposed on the manufacturers. Whereas, earlier VAT was Nil on all sports goods in Uttar Pradesh and Jammu and Kashmir whereas it was only 5% in Punjab.
He reported that Sports industrialists especially from Jalandhar have formed KUSS and are raising agitation against the central government for a cut in GST On Sports goods to 5%.
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He mentioned that the Centre has a few months ago reduced GST on physical fitness, gymnastics, and athletic goods from 28% to 18% yet, the industry is asking for a uniform 5% GST for all sports goods.
