Sewing machine dealers and traders in the meeting unanimously decided that businessmen will continue to charge and pay 12% GST rate on sewing machine parts, which they have been doing since July 1. But after the imposition of 18% GST on sewing machine parts according to the Central Board of Excise and Customs (CBEC) announcement the industrialists have decided to meet finance minister Arun Jaitley on October 7.

Varinder Rakheja, former president, Sewing Machine Dealers and Assemblers Association (SMDA) said, “Ever since GST was imposed, there has been major confusion over the tax rate. But we have always got one and the same answer from the officials that the rate of 12% GST is applicable on sewing machine parts falling under HSN code 8452. We request the government to issue a written notification about 12% GST on sewing machine parts immediately, so that there is no confusion and we can conduct our businesses smoothly.”

“There is no notification of any sort from the GST council or government regarding the hike in GST rate from 12% to 18%. Therefore, we will continue to operate on 12% GST, as we have been doing since it was rolled out. But it is really unfortunate that certain elements are trying to create confusion over GST rate. We have also decided to meet finance minister Arun Jaitley who will be in Gurdaspur on October 7. We will urge him to issue a written notification about 12% GST on sewing machine parts so that there is no further confusion,” Mohinder Singh, president, SMDA said.

While addressing officers at the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) in New Delhi on October 1, finance minister, Arun Jaitley urged tax officials to ensure that taxpayers are not harassed. He recently promised to simplify GST with fewer slabs once the government crossed the revenue-neutral threshold. He also stressed on the need for the government to mop up revenue.

– Apparel and Textile News, Apparel Talk, Indian Apparel