Shooting club members, arms dealers seek GST rate revision
Shootingclub members, private gun owners and dealers in different states have asked the government to either lift or revise the 28% GST imposed on revolvers and pistols and 18% on rifles, shotguns and air rifles. The rate is same for new and second hand weapon sale.
The high tax was resulting in under invoicing of the sale, leading to revenue loss to the government and in generation of black money, they claim.
Earlier, the sales tax was 18% on firearms of all categories and only 5% on air rifles.
“Last month I paid ~2.5 lakh for a Webley and Scott revolver made in the 1930s. That is its going market rate. The gun shop owner however prepared a bill for ~40,000. Who would pay 28% GST on ~2.5 lakh for an 80-year- old revolver?” said a south Kolkata based businessman requestinganonymity.“Afriendofmine bought a Walther PPK, the famous James Bond gun, for ~14 lakh. Please don’t ask what the billing amountwas,” hequipped.
The .32 bore revolver made by the Indian Ordnance Factory (IOF) has a close resemblance to the Webley and a fresh piece retails for around ~92,000, inclusive of 28% GST.
“Such steep GST rates will obviously makepeoplereluctant to pay. There should not be any GST on old guns and rates for new IOF weapons should be revised as well,” said Biswajit Biswas, ownerofDNBiswas and Co, one of the oldest gun shops in West Bengal. “There is no GST on second-hand cars or other second-hand goods,” he argued.
Dealers say over half of the licence holders own old weapons of foreign or Indian origin
Dealers have raised the issue in the past, too, and gun owners’ forums have been demanding that ban on import should be lifted. The ban was imposed in 1984, when the customs duty to import guns was 200%.
Abhijeet Singh, foundermember of National Association for Gun Rights India, said the government could allow foreign manufacturers to set up plants.
As per the ministry of home affairs, there were 33.69 lakh gun licences in the country as on December2016, with12.77 lakh of them in Uttar Pradesh alone.
KOLKATA: GROUPS DEMANDING REVISION CLAIM HIGH RATE RESULTS IN UNDER INVOICING OF THE SALE AND IN GENERATION OF BLACK MONEY