Domestic Industry had urged the govt to hike import duty to protect their business from cheap imports as GST cut lowered IGST rates for importers too
The Central Board of Indirect Taxes and Customs (CBIC) will review the suggestions given to them regarding increasing the import duty on consumer durable products with the aim to protect the domestic industry, the Press Trust of India (PTI) reported.
Hike on import duty to shield the domestic industry from cheap imports
Speaking about the hike on consumer durables, S Ramesh, CBIC Chairman, said that the domestic industry has requested the government to impose hikes in customs duty to protect the industry from cheap imports and that the board is looking into the matter.
The Goods and Services Tax (GST) Council recently announced its plan to slash tax rates on 17 white goods from 28 per cent to 18 per cent. Importers pay an Integrated GST (IGST) along with customs duty during the time of importing goods. With the recent GST slash, the IGST rate for importers too has come down.
Ramesh said in a Confederation of Indian Industry (CII) meet that the GST council decided on the GST cut on grounds of revenue neutrality and reduction of extra burden on taxpayers. He added that this decision marks the government’s firm resolve to boost the ease of doing business and trim the cost of compliance.
GST Council plans to continue rationalising rates
Ramesh said that GST Council has been rationalising rates and procedures are being made to make the rates comfortable for taxpayers so that tax compliance is easy in the long-run.
“The signal, intent and resolve of the government are to ensure tax rate, procedure and compliance burden are gradually made comfortable. At the same time, the government expects the industry also to ensure that compliance is a top priority,” he added.
He further said that tax officers are reaching out to the trade and industry to their offices to handhold them for expeditious refund clearance. “We are not only to collect taxes but refunds pro-actively,” he added.