MSMEs Confront GST Council Over Differential Duty Demand On Supplies To Railways

0
485

Suppliers of spares and components to the Railways are facing pressure from the Directorate General of GST Intelligence to pay up a differential component of duty prescribed for their products. GST levied on spares and components to Railways are different for different products while in pre-GST regime excise duty on supplies to railways were uniform.

So, the Railways had directed their suppliers to levy 5% GST on all the spare and component supplies. Now, the officials from the Directorate General of GST Intelligence are asking the suppliers to pay up the differential tax with interest where GST rate is higher than the 5% slab.

The issue has caused grave concerns in the MSME circles and is currently being raised by the Federation of the Indian Micro Small and Medium Industries (FISME) with the GST council.

LEAVE A REPLY

Please enter your comment!
Please enter your name here