Businessmen have alleged that ever since imposition of GST which is double the rate of VAT which was earlier applicable on their industry, their sales have nosedived and until the rate of tax is slashed there is no chance of revival.
Lashing out against union government, GS Kahlon, president of Auto Parts Manufacturers Association said, “Ever since July 1 there has been huge cut in orders from our buyers. This has happened due to high rate of 28 percent GST which is double of 14.75 percent VAT which we used to pay during VAT regime. Several of our small customers have closed their business permanently due to increase in investment after high rate of GST. The situation is going to deteriorate in coming days and therefore we demand that GST on our industry should be brought down to 18% immediately so that our industry could survive”