Page 7 - Plastics News November 2017

THE PRESIDENT
THE PRESIDENT SAYS SAYS

Towards a more rational GST

he moment for which India’s businesses were waiting for many years arrived on 30th
TJune 2017 mid night. In a special Parliament Assembly Session at night, Honourable
Prime Minister Narendra Modi addressed the nation and introduced the Goods and Services
Tax (GST) marking a beginning of new era for the country.
Introduction of GST brought lots of hopes for India’s businesses as they looked forward
to freedom from shackles of an obsolete tax system that compromised competitiveness
restricting growth of the economy. As ‘One Country, One Tax, One Market’ seemed closer
to reality, businesses prepared for reaping benefits.
This however was not to be the case, as the fine print evolved and confusion prevailed on
modalities to be in compliance, trade and industry started to get frustrated over multiple
rates, failure of electronic network supporting the tax and non-clarity on many issues.
The hardest hit was MSME segment as businesses saw their volumes plunge considerably.
The cost escalations due to higher rates ensured slower movements of their goods. This HITEN BHEDA
coupled with time bound payment of taxes and non-availability of input credits hampered
cash flows. The concern started to pinch and many units were at the verge of closure or
had to reduce work force to sustain.
Your Association was among the first ones to take up these concerns with various levels
bringing anomalies of the new tax regime to the attention of the authorities and eagerly
awaited each meeting of GST council hoping that the issues will be addressed.
It was only on 10th November during 23rd meeting of the GST council held at Guwahati
that Government took a bold step by pruning most of the items out of higher tariff rate of
28% to a reasonable rate of 18% and streamlining many procedural road blocks paving way
for MSME segment to breathe a fresh. We are thankful to the GST Council for listening
to the request of the industry and reducing tariff from 28% to 18% particularly on other
articles of plastics under HSN code 39.26.90 covering numerous items of common use.
There still remains some unfinished agenda on the GST front affecting the industry and
we are hopeful that with persistent follow up by the Association, the GST council will
facilitate desired changes. AIPMA has been supportive of GST from the beginning and
would like to reiterate our support as we are upbeat about the benefits that the new tax
regime will bring.

Hiten Bheda
president@aipma.net

7 N ovember 2017 Plastics News