Equipment makers’ upbeat on GST rate cut

    Equipment makers’ upbeat on GST rate cut
    The slashing of GST rate from 28 to 18% on mining and construction equipment drew accolades from across the Construction Equipment manufacturing segment, as the move will help support infra building in a big way across the country, said Vice-Chairman and MD of concrete pump manufacturer Schwing Stetter (India), Anand Sundaresan. It is a big relief for most of the industry but for 15% of the products, the rate continues to be 28% and the industry seeks reduction for those products as well. Anand Sundaresan, who is a former President, Indian Construction Equipment Manufacturers Association (ICEMA), further said that pre-GST duty was under 20% and after the introduction of GST sales of equipment declined 35% in July. However, things returned to normal and the overall growth was not affected as the industry grew 19% in Q1 and 22% in Q2. And the industry will sustain this in the current fiscal as well. So far, only road construction has driven growth, but the Railways also started to offer some business opportunities. Leasing will become cheaper post-GST, as earlier they had excise duty and sales tax, and on top of that service tax, the total rate worked out to 30-32%. Now, leasing companies will charge only 18% GST and it will benefit them a lot. Referring to EXCON 2017, the 9th International Construction Equipment and Construction Technology Trade Fair to be held from December 12 to 16 in Bengaluru, Sundaresan, who is a member of the event committee, said this year‘s edition will be one of the largest fairs with a display area of 260,000 sqm. The organizers expect more than 1,000 exhibitors, including 300 companies from abroad. It is expected to attract about 50,000 visitors. Key objectives are to promote Make in India, skill development and component manufacturing, he said.
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