Assocham urges Centre to bring industrial fuel under GST
Assocham on Thursday urged the Centre to bring industrial-use CNG and LPG under the Goods and Service Tax (GST) regime to bring down the cost of production.
Since these gases, which are used as fuel in many industries, are not covered under the GST at present, entrepreneurs are unable to claim input tax credit on its consumption, Assocham president Vineet Agarwal said here.
Assocham has also been pitching for bringing petrol and diesel under the GST to ensure uniformity in automobile fuel in the country.
''Assocham had already made a suggestion to the government to bring fuel under GST so that the overall tax structure comes down. If not petrol and diesel, the government can at least think of bringing CNG and LPG, which are used by factories, under the GST. This will enable the factory owners to claim input tax credit on it,'' the Assocham president said.
''At present, one cant claim input tax credit on the consumption of such fuel. If we bring that under GST, the manufacturing cost will come down as the factory owners would get the input tax credit on the consumption of CNG and LPG'' he added.
While talking to reporters after the meet, Agarwal said though some sectors, such as tourism and services sector, were hit hard due to the coronavirus pandemic, the country's economy is on the path of recovery right now and the GDP growth could touch the mark of 10 per cent this year.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)