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Sunday, Nov 17, 2019

Industry hails deadline for GST refunds, removal of angel tax for start-ups

The Union government should also have focused on other sectors of economy, including real estate, steel industry and textiles, which are also facing a slump, say industry representatives.

punjab Updated: Aug 24, 2019 22:53 IST
HT Correspondent
HT Correspondent
Hindustan Times, Ludhiana
The automobile sector has shown a positive response to the announcements made by Union finance minister Nirmala Sitharaman to prop up the slowing economy.
The automobile sector has shown a positive response to the announcements made by Union finance minister Nirmala Sitharaman to prop up the slowing economy.(Mohd Zakir/HT PHOTO)
         

While the automobile sector has shown a positive response to the announcements made by Union finance minister Nirmala Sitharaman to prop up the slowing economy, the local industry feels that the Union government should also have focused on other sectors, including real estate, steel industry and textiles, which are also facing a slump.  

Announcements regarding fixing a deadline for GST refunds, removal of angel tax for start-ups, enhanced depreciation on vehicles, removal of ban on purchase of new vehicles by the government have been welcomed by the local industry.  

The industrial representatives, however, said the government had tried to boost the industry, but it would be beneficial only when the government implemented the promises at the ground level.  

The Automotive Component Manufacturers Association (ACMA) expressed satisfaction that the government had taken note of the precarious situation in the auto and auto components industry and had, accordingly, taken appropriate measures to address it.  

Association president Ram Venkataramani said, “The announcements made by the finance minister are very assuring. We do hope that measures to improve liquidity and deferring of enhanced vehicle registration cost will revive the ailing sales in the auto sector. That apart, enhanced depreciation of 30% till March 2020 will motivate institutional sales of vehicles. Further, the removal of ban on the purchase of new vehicles by the government will also help reduce the current inventory pile-up.”  

“It is also encouraging to note that the government will be announcing a scrappage policy in due course. This will not only create replacement demand, but will also have a benign impact on the environment and reduce import of fossil fuels. New vehicles will be endowed with better technology,” added Ram.  

Member, National Board for MSMEs, Gurpreet Singh Kahlon, said fixing of a deadline for GST refunds would benefit the industry as the industry was facing a lot of problems due to delay in GST refunds. Also, it would be beneficial if the government departments made payment in time, he added.  

General secretary of the United Cycle and Parts Manufacturers Association (UCPMA), Rajeev Jain, said representatives of different industrial sectors had a meeting with minister of MSMEs and road, transport and highways Nitin Gadkari and finance minister Nirmala Sitharaman in August and the meeting had reaped good results for the industry.

President of the Federation of Punjab Small Industries Association (FOPSIA) Badish Jindal said by fixing a deadline for GST refunds, the government had admitted that there was delay in releasing GST refunds.

Most of the announcements has been made to give relief to the automobile sector, but other sectors such as textiles, steel industry and real estate have not been given any relief, said Jindal.