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.
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.