FICO demands uniform GST from FM

Ludhiana, July 19, 2017: Today, delegation of FICO under the chairmanship of S.Gurmeet Singh Kular, President, FICO along with Sh.Ravinder Arora Convener Industrial Cell BJP Punjab interacted with Sh.Arjun Ram Meghwal, Union Minister of State, Finance & Corporate Affairs & Sh.Vijay Sampla, Union Minister of State for Social Justice, at New Delhi, and demanded Deemed Credit on bicycle components of manufacturers, uniform GST on agriculture parts, sewing machine parts & bicycle parts and demanded to abolish GST on advance payment & bank guarantee on exports.
The memorandum reads as under:
• Uniform GST on Sewing Machine, Bicycle, Agricultural Implements & their parts:
Bicycle & parts have been taxed at 12% in GST, but there are few anomalies in it, parts of bicycle like cycle steel balls, bell & lock has been brought in 18%, patch roll for puncher has been brought in 28%, we request that universal GST should be charged at all the bicycle & parts. Cam Shaft of Sewing Machine is taxed at 28%, Gear Parts used in Combine is taxed at 18% & 28% uniform GST should be Charged.
• Input Tax Credit to Bicycle Industry:
On 30th June 2017, GST was imposed on bicycle & parts with 12% as GST. Bicycle & Parts are made from steel where the small manufacturers have already paid the excise duty as well VAT, but the manufacturer has not been granted input tax credit on component in stock but this concession has been allowed to traders. We request that uniform concession be allowed to manufacturers as well as traders i.e. 40% of the GST. Approximately 70% of material used to manufacturer these components is duly paid and the same is embedded in the cost of the component. Anomaly is that credit of the same is not available for inputs held in stock on appointed date.
• GST on Advance Payment:
The payment received as advance are taxed 12% before dispatching the material, at time of placing the order. But before dispatching the material it is not feasible as sometimes the order is cancelled or postponed. We request that the GST should be charged after billing the material.
• Bank Guarantee on Exports:
As per the provision of G.S.T. for exports even for Nepal/ Bhutan, Bank Guarantee is @ 15% of average 3 months sales is required, clearance of G.S.T. officer is also required. Star houses are exempted from this stipulation. This anomaly should be removed to boost exports.

Sh.Arjun Ram Meghwal understood the problems bought to his notice and referred the same to Tax Research Unit (TRU) & GST Council for Examine.
Amongst present were S.Gurmeet Singh Kular President FICO, Sh.Ravinder Arora Convener Industrial Cell BJP Punjab, Sh.Rajeev Jain Secretary & Sh.Mandeep Chaudhary Media Adviser FICO.