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Sunday, June 25, 2017

Tractor Manufacturers Feel Short Charged - TMA on GST

By on Sunday, June 25, 2017

Tractor Manufacturers Feel Short Charged - TMA on GST

Tractor Manufacturers Feel Short Charged

Tractor manufacturers are unhappy over farm sector being short charged under the new GST rules in terms of components and spares of tractors. The present levy is of 28 % GST on parts and components of tractors but parts and components of construction equipment, which are close kin to tractors especially under 80 HP, will attract only 18 % GST. Both sectors have similar emission norms but are being treated differently when it comes to GST, despite several representations to the council.

Parts of tractors, equipment and implements can be easily identified and can be used only in tractors and are not usable in automobiles which are high-speed applications as opposed to tractors which are low-speed, high-torque applications. Representations have been made now to the highest levels and they hope the GST rates on parts and components would be revised to 18 %.

The manufacturers are also upset over transition provision on tractor stocks held at depots and dealerships. With hardly 9 days to go, any delay in extending transition provision could increase tractor costs by Rs. 30,000 to Rs. 34,000 to farmers, which will impact the agriculture sector negatively and hurt the sentiments of the farmers. Urgent clarity on extension of transition provision is therefore also awaited.

T. R. Kesavan
Chairman (Technical Committee)
Immediate Past President
Tractor Manufacturers’ Association

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