Punjab Furnace industry demands reduction in GST on scrap from 18% to 5%

Ludhiana, Feb 7 (KNN) The Punjab furnace industry has urged the union government to reduce the GST on scrap from the current 18 per cent to 5 per cent.

The industry pointed out that this will help put an end to bogus billing and tax evasion worth several thousand crores being done by fraudsters besides ending the harassment of the genuine businessmen.

“The high rate of 18 per cent GST on scrap makes it lucrative commodity for scamsters to execute the sham business of bogus billing and fleece the exchequer. Several genuine businessmen also get entangled in this vicious circle even if they do not indulge in tax evasion,” said Dev Gupta, general secretary of Induction Furnace Association of North India.

Gupta urged the finance ministers of both central and state governments to reduce GST on scrap and save the Industry.

According to Vaishno Gupta, president of Furnace and Allied Industries Association, “If the rate of GST on scrap are reduced to 5 per cent, it will be nothing less than a surgical strike on the bogus billing and tax evasion malpractices in the country. Every year thousands of crores of rupees worth GST is being usurped by criminals through bogus billing and once the tax rate is reduced to the lowest slab they would not be able to do it anymore.”  (KNN bureau)