Sports industry could reel under the burden of GST
To make high quality equipment, we need support from government. But the current move might have a negative impact on the growth of the industry. We should make quality equipment available to youngsters at the grassroots and not when they reach the top.
The government decision to categories the sports goods industry in the 12-28 per cent slab under the Goods and Service Tax (GST), to be implemented from July 1, has drawn flak from all quarters.
Entrepreneurs in the field feel that sports goods should have been listed in the five per cent slab. Currently they pay two per cent tax, while the government’s latest circular has increased the slab to 12 per cent.
Ashutosh Bhalla, director of Vinex Enterprises Pvt Ltd, said that on the one hand the government plans to make sports mandatory in schools --- a step towards inculcating sports culture ---, on the other, there is no relaxation given to sports goods, a thriving cottage industry.
“All stakeholders should join hands to improve sports awareness in the country,” he told HT over phone from Meerut. “Sports equipment will become more expensive,” he added.
Rakesh Mahajan, chairman of All India Sports Goods Manufactures Federation (AISGMF), had appealed to the government to support the industry mainly spread in Meerut in Uttar Pradesh and Jalandhar in Punjab.
“To make high quality equipment, we need support from the government. But the current move might have a negative impact on the growth of the industry. There are more than 1000 registered units and another 1500 cottage units in villages,” said Mahajan.
Mahajan said that high-quality imported javelins -- used by the likes of world junior champion Neeraj Chopra use -- cost in excess of ~1 lakh, adding that the same can be manufactured in India at cheaper price provided the government gives support.
Krishan Poonia, the 2010 Commonwealth Games discus throw champion, says there shouldn’t be any tax on sports goods. “We should make quality equipment available to youngsters at the grassroots and not when they reach the top,” she said.
Shaji Prabhakaran, the former South Asian regional football development officer, said that there should be a relaxation so that more people can come and enjoy sports. “We have to think differently to encourage sports,” he added.
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An AFC media release stated that the format for the shortterm would be decided by the AIFF. Mohun Bagan have already asked for that meeting to be held on June 12. That keeps alive the possibility of the ISL and the I-League being held simultaneously in 2017-18.
There was at least one Fifa representative at the meeting chaired by AFC general secretary Windsor John. Conspicuous by their absence among the over 20 who attended, including representatives of the sports ministry, were AIFF president Praful Patel and senior vicepresident Subrata Dutta.
The National Games in Goa will be postponed till next year with Goa chief minister Manohar Parrikar saying that the infrastructure required for hosting the event can be constructed only next year. The games, scheduled to be held in September 2016 in Goa, was postponed to November 2017 by the