New Delhi, July 26 (KNN) With almost a month into the newly implemented Goods and Services Tax (GST) in the country, imposing 18 per cent GST on the industrial lease rent is adversely impacting the industry in the region that comprises of hundreds of Micro, Small and Medium Enterprises (MSMEs), Noida Industry body has said.

Talking to KNN, Vipin Malhan, President of Noida Entrepreneurs Association (NEA) explained the concern.

He informed that earlier the industrial units in the Noida region were exempted tax on rent, but under the GST, 18 per cent tax is imposed on the lease rents. Also in case the entrepreneur wants to transfer the land, the transfer charges are also imposed with an 18 per cent tax on it.

“For instance, if an entrepreneur had to pay 10,000 rupees as rent for a land, he will have to pay the rent along with an added 18 per cent, which would impact the manufacturing chain  at all levels” he added.

He further said that the market situation is already not very appealing ever since demonetization, such rules are going to add to the burden.

Commenting on the eWay bill that the industry is to file starting today, Malhan said that on one hand the country was happy that finally we have one nation one tax, but then the eWay bill is against the claim.

“The eWay bill is just a replica of the form 38 that used to exist under the sales tax regime, this goes against the fundamental of One Nation One Tax” he added.

Malhan informed that his association will be holding talks with the Principal Secretary Alok Sinha in Lucknow later today demanding an exemption of the 18 per cent. Also the industry body would appeal to reconsider the eWay bill norm under the GST. 

Despite the complications, the MSME sector welcomed the GST with hope that it would ease the process of taxation, but with thing turning other way round, the sector is likely to suffer said Malhan. (KNN/ DA)