The Indian Fan Manufacturer’s Association (IFMA) has made a representation to Union Finance Minister Arun Jaitely and to the GST Council to reconsider the new tax rate for fans. At present, fans will be charged 28 per cent GST, along with air conditioners. The IFMA, in its representation, asked for fans to be kept under 12 per cent GST instead. Chairman IFMA and president Usha International, Rohit Mathur said, “Fans have been kept in the same luxury bracket as air conditioners. In a tropical country like India, fans are not a luxury item. They are an essential commodity and a poor man’s item.’’
The 12 per cent tax bracket includes items such as bicycles and mobile phones.
“Already the taxes on fans comes to about 25-26 per cent. This in itself is too high. And the new GST slab proposes to increase this further to 28 per cent. The burden on the poor man will be too much. And now with electrification increasing across the country, the consumer base and numbers are also simultaneously increasing. But the taxation rate is prohibitive,” he adds.
Mathur further adds that decreasing the tax on fans will also help the fan manufacturing industry as at least one-third of the industry now runs in the unorganised sector. “There are hundreds of fan manufacturers in the unorganised sector. If the taxation is brought down then it’ll help these companies to enter the organised sector,” he said.