GST blues hit sports goods makers in Jalandhar, claim 50% dip in sales
JALANDHAR: Tradersandbusinessmen from the sports equipment manufacturing industry in Jalandhar have demanded rollback of the Goods and Services Tax(GST)rates,statingthattheir business has declined by 50% after the GST was rolled out in July last year.
Traders said their businesses were hit hard because of the confusion over the new tax regime. Apart from this, they said the spikeinpricesalsocontributedto the loss. They added that sports goods are being taxed between 12%to18%,whereasearliermost sportsequipmentinvitedonly6% value-added tax (VAT).
“Withtheincreasingprice,our business has fallen by approximately 50%. The government shouldreduceGSTratesongym equipment and sports goods,” said Ravinder Dhir, president of Punjab Udhyog Veyopar Sena.
He added that recently, industry representatives met Punjab financeministerManpreetSingh Badal and a memorandum was also submitted to the GST com- missioner last Friday. “We have demanded a reduction in GST rates on sports good,” he said.
Meanwhile, traders complainedthatthedemandofsports equipment,beitcricketbat,balls, football, volleyball or badminton racket, has declined.
AmanArora,whorunsabusiness of gym equipment, said, “The demand has sharply declined.Customersarenotplacing bulk orders even after six months of GST.”
Dhir, who also owns Dhir Enterprises, said, “In the preGSTregime,weusedtomanufacture around 2,000 cricket bats every month. However, we are nowmanufacturingonlyaround 1,000 to 1,200 bats per month. The actualdemandisevenlowerthan this,” Similarly, Vipan Preenja, owner of Marshall Export, said, “The cost of sports items has drastically increased because of the 18% GST on sports bag and shoes. Earlier, we used to pay only 6% VAT. Our sales have decreased by over 50%.”
He added that prior to the introduction of GST, his firm used to manufacture 2 lakh bag every month. However, at present, they hardly manufacture 80,000 bags.
Speaking on the issue further, Dhirsaidgymequipmentshould be placed in the 5% to 12% GST slab, against the present rate of 18%. Besides, sports items, including bags and helmets, should be in the 5% slab because these are meant for physical fitnessandtheprofitmarginisvery low, he said.
“Thegovernmenthasreduced GSTratefrom5%to0.25%forcut and polished diamonds. But, the GSTonsportsequipmentcontinues to be over 12%,” he said.
Meanwhile,tradersclaimthat the sports equipment manufacturing industry in Jalandhar caters to approximately 55% of the country’s demand.
The industry is estimated to be worth ₹1,800 crore and provides employment to nearly 50,000 people. TARN TARAN : The Special Task Force (STF)of TarnTaranpolice arrested three persons in two separate cases and seized 500 gm heroin and 500 gm opium from their possession on Tuesday.
Theaccusedhavebeenidentified as Satnam Singh, a resident of Marhana village; Nirvail Singh, a resident of Palasaur village, and Ganesh Kumar, a resident of Mohalla Nanaksar, in Tarn Taran district.
Sukhwinder Singh, in-charge of STF Tarn Taran, said Satnam andNirvaliwerearrestedfroma nakaatShakriturninSarhalivillage.“Westoppedasuspectedcar in which Satnam and Nirvail were travelling. After frisking them, we seized 500 gm heroin from their possession.”
Speaking about the second case, he said a team led by ASI LakhwinderSinghreceivedatipoff while patrolling near Seven Star Hotel that Ganesh is involved in selling opium. “The team immediately raided Ganesh’shouseandcaughthimwith 500 gm opium,” he said.
Cases under the NDPS Act have been registered against the accused. HTC