Tractor Manufacturers guide post guide sleeves manufacturers Association (TMA) said out of the 66 items on which GST rates were reduced on Sunday, a large chunk of major components used in making tractors have been left out and the reduction must be extended to across all tractor parts.TMA Chairman Technical Committee TR Kesavan said if GST is implemented under the proposed rate with inverted duty structure of input tax of 28 per cent and output of 18 per cent, relief provided to tractor industry will be marginal.The tractor industry always holds more than 1.
TMA has requested for changing component duties in tractors from proposed 28 per cent to 18 per cent. TMA further said tractor industry has also been left out of the transitional provisions in respect of stocks held at depots and dealerships which are extended to all industries.5 Lakh vehicles in stock in depots and dealerships and denial of this relief will severely impact the farming community."This would be much needed to ensure that the farming community does not suffer, Srinivasan added.Input cost per tractor would go up by about Rs 25,000 having an impact on industry working capital."This anomaly is due to the downward revision of GST being limited to token components of a tractor while major aggregates and components such as engines, transmissions and other parts will continue to be levied at 28 per cent," Kesavan said.New Delhi: Tractor manufacturers today expressed disappointment over reducing GST rate only on "token components" to 18 per cent and demanded that it must be extended to all parts, saying input cost per vehicle will go up by about Rs 25,000 under the new tax regime."The tractor industry despite having an embedded tax rate of 8 per cent is not eligible for this relief just because of the fact that tractors were in the exempted category till now," the association said.Input cost per tractor would go up by about Rs 25,000 having an impact on industry working capital to the extent of Rs 1,600 crore, he said in a statement.  
Unfortunately this has only been partially rolled out as of now.  end-ofTags: tractor manufacturers, gst, tma, indirect tax regime, goods and service taxLocation: India, Delhi, New DelhiRelated StoriesGST anti-profiteering body may lack enough muscleLower GST on job work of textile yarn to help SMEs: CITIFarmers ask Govt to roll back 5 per cent GST on raw tobaccoHasmukh Adhia rules out delay in GST rollout."She asked revenue department to reduce duty on all tractor components such as engines, transmission, axles, centre housing, front and rear tires and tubes and other parts from 28 per cent to 18 per cent.TMA has requested for changing component duties in tractors from proposed 28 per cent to 18 per cent."Hence, tractors should be treated at par # with other products of such nature and should not be discriminated," it added.