The Ludhiana Auto Components industry has again demanded a reduction in the 28% GST on several products. Businessmen say the high rate is causing GST to block their funds. They believe that lowering GST to 12% for all auto parts will boost government tax revenue.
“Ever since 2017, growth of the auto parts manufacturing industry of Ludhiana has come to a standstill, for which a major reason is the high rate of 28% GST on a lot of our products,” said Gurpargat Singh Kahlon, president of the Auto Parts Manufacturers Association. Input Tax Credit (ITC) departments hold a lot of our money because of this. Kahlon added that they sent a memorandum to state finance minister Harpal Singh Cheema urging him to raise the issue with the centre and set a 12% auto parts industry slab. Auto Parts Manufacturers Association executive Nitin Sharma said it would boost government revenue.
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