AIPMA Thankful to GST Council for Accepting Its Recommendation to Rationalize GST Rates
AIPMA President Shri. Hiten Bheda has expressed thanks on behalf of the AIPMA committee to the GST council for accepting its demand for rationalization of GST rates on plastic items from 28% to 18% and below.
Members of the AIPMA GST sub-committee and affiliated associations presented a draft to the GST council citing recommendations and implications of the GST had on the plastic processing industry.
AIPMA’s representation was submitted to more than 40 key ministers and all senior officials in GST council as well as most ministries of Government of India including – the Hon’ble Prime Minister, Finance Minister, Industry & Commerce Minister, Minister of MSME, Minister of Chemicals & Fertilizers, Secretaries of Department of Revenue, Commerce & Industry, DCPC, MSME, an All State Ministry of industries etc.
As a follow-up, AIPMA team met many GST Council members including – Finance and Industry Ministers of key states of Chhattisgarh, Haryana, Rajasthan, Uttar Pradesh & Assam. AIPMA further met Ministers of State (MoS) for Chemicals & Petrochemicals, Finance & Defense to push industry case on GST matters. It also met Chief of the Tax Research units (TRU) in the Ministry of Finance and many key officials in various Central and State Government departments.
AIPMA organized an exclusive interaction session of the Plastic industry with Shri Rajeev Kapoor, Secretary, Department of Chemicals & Petrochemicals, GOI in Mumbai on 5th October 2017 and demanded a rollback of 28% of tariff rate on many plastic items to lower rates.
Plastic industry serves daily necessities like houseware, packaging of food products, water bottles, trays, buckets etc. were levied a high GST. PVC floorings, PE interlocking mats, vacuum flasks and other miscellaneous articles were kept under the highest GST tax bracket rate of 28%, which in the long run, could have created an inflationary pressure on the economy.
After the GST came into effect, manufacturing activities of the MSMEs (micro, small and medium enterprises) suffered a big blow. There was a huge fear that a large number of the workforce might become unemployed. However, the cuts in GST rates is expected to give a new lease of life to the plastic processing sector.
AIPMA worked closely with Malegaon Recyclers Association, Jalgaon Association, Various South Indian Associations in representing the case of GST on recycled materials. As a result, the GST on recycled plastics was brought down from 18% to 5%.
AIPMA will continue to work to take up all possible industry issues at all levels of Government.