Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post

High GST rate on cables, wires, electronic components to lead to inflation

- Advertisement -

Fearing higher GST rates on wires, cables & electronic components could have a crippling effect on the manufacturers, industry associations have demanded lower GST rate of 18 percent for these key products. While the current effective tax rate for these products works out to be 18.12 per cent, under GST they will be taxed at 28 per cent.

According to Business Standard, a delegation of various associations led by Chamber of Associations of Maharashtra Industry and Trade (CAMIT) met Rajiv Jalota, Commissioner of Sales Tax, Maharashtra, on Saturday, to put forward their demand to revise GST rates for products under the HSN Code 8544 (, such as winding wires, coaxial cable and optical fibres) and HSN Code 8536 (such as electronic components like switches, connectors and relays) from the proposed 28 percent to 18 percent. 

- Advertisement -

Present at the meeting were, Mohan Gurnani, chairman of CAMIT, Nikunj Turakhia, president of Steel Users Federation of India (SUFI), Hemant Parekh, president, Bombay Metal Exchange (BME), Mitesh Mody, general secretary of All India Electronic Association, Inder Jasinghani, CEO of Polycab Wires, among others.

Current rate of excise duty and VAT on all wires, cables and electronic components across all the major states is 12.5 percent and 5 percent respectively, resulting into current effective rate of 18.12 percent. Industry fears that reclassifying cables, wires and electronic components falling under HSN Code 8544 and 8536 in 28 percent slab rate of GST, will lead to inflation as compared to the prevailing rate.

The rate of GST on raw materials used for cables and wires is fixed at 18 percent. Cables account for almost 82 percent of the turnover of cables and wires industry. Wires and other products account for balance 18 percent of the total turnover of the industry. It is understood in the GST rules that, all the CAPEX items will be subjected to 18 percent GST.
- Advertisement -

Most Popular Articles

Government Allocates FY26 Subsidy Funding For Electric Three-Wheelers

0
With subsidies now cut by half, manufacturers expect that they will need to increase prices to transfer the extra costs onto customers. The Union government...

MotoHaus Unveils New E-Bikes Starting At INR 1.30 Lakh

0
MotoHaus has initiated operations, presenting a line of electric and conventional motorcycles from VLF and Brixton Motorcycles. The company is set to establish dealerships...

Wolfspeed CEO Removed Amid EV Slowdown, Shares Rise

0
Wolfspeed ousts CEO Gregg Lowe as EV demand drops, triggering a 6% stock surge. The company faces closures, layoffs, and a stalled German factory...

Beijing’s $4.6B Wafer Fab Project Aims High

0
With major players Beijing Yandong Microelectronics and BOE leading the charge, China bets $4.6B on a cutting-edge 12-inch wafer fab to power its semiconductor...

Honda’s Activa E Debuts Nov 27, Competes In Electric Scooter Market

0
Set to launch on November 27, the Honda Activa E is HMSI's first foray into the electric scooter sector. It will be available in...
Sunit Kapur, CEO of Epsilon

“Epsilon Leads With Low-Carbon Graphite Manufacturing, Outpaces Chinese Competitors” – Sunit Kapur, CEO of...

0
Are LFP cathodes and silicon-graphite anodes the best for cost efficiency in EV batteries? Sunit Kapur, CEO of Epsilon Advanced Materials, discusses this with...
John W. Mitchell, President and CEO, IPC

“India’s Core Focus On 5G, IoT, AI Fosters Need For Advanced Electronics,Components, And Semiconductors”...

0
Will Industry 4.0 supercharge India’s progress in semiconductor and electronics manufacturing? IPC President and CEO John W. Mitchell shared more strategies on the country’s...
Raman M., Co-Founder and CEO, chargeMOD

“Our Goal Is To Achieve Complete Sustainability By 2025-2026” – Raman M. Of chargeMOD

0
In a conversation with Nitisha Dubey from EFY, Raman M. of chargeMOD, elaborated his goal of developing virtual power plants by decentralising power production. Q....

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Dr Yashodhan P. Gokhale, Vice President for Battery Technology, JSW Energy

Charge Forward: High-Voltage Batteries And MSMEs Can Fuel India’s EV Revolution

0
A nuanced explanation of low- and high-voltage EV batteries by Dr Gokhale, Vice President for Battery Technology at JSW Energy, illuminates their advancements and...

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Karnataka Government Initiative Promises ₹5M To Tech Startups

0
Boosting innovation and entrepreneurship across the state’s vibrant ecosystem, Karnataka launched Elevate 2024 and KAN, offering grants up to ₹5 million for startups. On Tuesday,...

Industry's Buzz

Government Allocates FY26 Subsidy Funding For Electric Three-Wheelers

0
With subsidies now cut by half, manufacturers expect that they will need to increase prices to transfer the extra costs onto customers. The Union government...

MotoHaus Unveils New E-Bikes Starting At INR 1.30 Lakh

0
MotoHaus has initiated operations, presenting a line of electric and conventional motorcycles from VLF and Brixton Motorcycles. The company is set to establish dealerships...

Wolfspeed CEO Removed Amid EV Slowdown, Shares Rise

0
Wolfspeed ousts CEO Gregg Lowe as EV demand drops, triggering a 6% stock surge. The company faces closures, layoffs, and a stalled German factory...

Beijing’s $4.6B Wafer Fab Project Aims High

0
With major players Beijing Yandong Microelectronics and BOE leading the charge, China bets $4.6B on a cutting-edge 12-inch wafer fab to power its semiconductor...

Honda’s Activa E Debuts Nov 27, Competes In Electric Scooter Market

0
Set to launch on November 27, the Honda Activa E is HMSI's first foray into the electric scooter sector. It will be available in...

Learn From Leaders

Sunit Kapur, CEO of Epsilon

“Epsilon Leads With Low-Carbon Graphite Manufacturing, Outpaces Chinese Competitors” – Sunit Kapur, CEO of...

0
Are LFP cathodes and silicon-graphite anodes the best for cost efficiency in EV batteries? Sunit Kapur, CEO of Epsilon Advanced Materials, discusses this with...
John W. Mitchell, President and CEO, IPC

“India’s Core Focus On 5G, IoT, AI Fosters Need For Advanced Electronics,Components, And Semiconductors”...

0
Will Industry 4.0 supercharge India’s progress in semiconductor and electronics manufacturing? IPC President and CEO John W. Mitchell shared more strategies on the country’s...
Raman M., Co-Founder and CEO, chargeMOD

“Our Goal Is To Achieve Complete Sustainability By 2025-2026” – Raman M. Of chargeMOD

0
In a conversation with Nitisha Dubey from EFY, Raman M. of chargeMOD, elaborated his goal of developing virtual power plants by decentralising power production. Q....

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Dr Yashodhan P. Gokhale, Vice President for Battery Technology, JSW Energy

Charge Forward: High-Voltage Batteries And MSMEs Can Fuel India’s EV Revolution

0
A nuanced explanation of low- and high-voltage EV batteries by Dr Gokhale, Vice President for Battery Technology at JSW Energy, illuminates their advancements and...

Startups

Space tech Startup Akash Secures $68M CHIPS Funding

0
Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Karnataka Government Initiative Promises ₹5M To Tech Startups

0
Boosting innovation and entrepreneurship across the state’s vibrant ecosystem, Karnataka launched Elevate 2024 and KAN, offering grants up to ₹5 million for startups. On Tuesday,...