ICEMA cuts construction equipment growth rate to 5% due to GST

Construction equipment industry body ICEMA today cut growth forecast for the sector to 5 per cent from 20 per cent for the ongoing fiscal saying higher GST rate and cheaper imports under the new tax regime will affect sales.

Construction equipment industry body ICEMA today cut growth forecast for the sector to 5 per cent from 20 per cent for the ongoing fiscal saying higher GST rate and cheaper imports under the new tax regime will affect sales. According to Indian Construction Equipment Manufactures’ Association (ICEMA), under the GST 80 per cent of construction equipment machinery has been put under 28 per cent tax slab while the remaining will be taxed at 18 per cent. In the existing tax system, around 50 per cent of the total construction equipment has a tax incidence of 15 per cent, while around 30 per cent has 18 per cent rate, and the remaining 20 per cent around 28 per cent.

“The majority of vehicles that contribute to the overall sales of construction equipment in India such as backhoe loader and excavator will now be taxed at 28 per cent. In the short term there will be cash flow issues and sales are likely to be affected by 10-15 per cent,” ICEMA President Anand Sundaresan told PTI. He said what is more worrisome for the industry is that under the GST regime imported construction equipment, a majority of which comes from China, will become cheaper and it will hurt domestic industry in the long run.

“Under the GST regime, the government has allowed to take tax credit on imported construction equipment, which wasn’t the case earlier. This will lead to reduction in the landed cost,” Sundaresan said. As a result imported construction equipment will become much cheaper and domestic manufacturers will struggle.

“So keeping in mind both the short term and long term impact of GST, our assessment is that this year the industry will grow only around 5 per cent. We were expecting it to grow around 15-20 per cent earlier,” he said. In 2016-17, the industry posted sales of around 70,000 units at a growth of 25 per cent. Sundaresan hoped the government will take a relook at the GST rate for the construction equipment industry keeping in mind the interest of domestic manufacturers.

Source: http://www.financialexpress.com/economy/icema-cuts-construction-equipment-growth-rate-to-5-due-to-gst/738182/

26 comments

Hi! This is my first visit to your blog! We are a team of volunteers and starting a new project in a community in the same niche.
Your blog provided us useful information to work on. You have done a marvellous job!

Attractive section of content. I just stumbled upon your
site and in accession capital to assert that I get
actually loved account your weblog posts. Anyway I’ll be subscribing for your
augment and even I achievement you get right of entry to consistently
rapidly.

I do trust all the concepts you have offered for your post.
They’re really convincing and can definitely work.
Nonetheless, the posts are very short for beginners.

May just you please lengthen them a bit from next time?

Thanks for the post.

I don’t know if it’s just me or if everyone else experiencing issues with your website.
It appears like some of the text in your posts are running off the
screen. Can somebody else please provide feedback
and let me know if this is happening to them
as well? This may be a problem with my browser because I’ve had this happen previously.

Kudos

This design is wicked! You most certainly know how to keep a
reader amused. Between your wit and your videos, I
was almost moved to start my own blog (well, almost…HaHa!)
Wonderful job. I really loved what you had to say, and
more than that, how you presented it. Too cool!

My spouse and I absolutely love your blog and find many of your post’s to be what precisely I’m looking for.
Do you offer guest writers to write content in your case?

I wouldn’t mind creating a post or elaborating on a number
of the subjects you write about here. Again, awesome weblog!

My brother suggested I may like this website. He used to be totally right.
This put up truly made my day. You cann’t believe simply how
so much time I had spent for this info! Thank you!

We’re a group of volunteers and starting a new scheme in our community.
Your website offered us with valuable info to work on. You’ve done a formidable job and our whole community will be thankful to you.

Hi, I think your site might be having browser compatibility issues. When I look at your blog site in Firefox, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, very good blog!

Cool blog! Is your theme custom made or did you download
it from somewhere? A theme like yours with a few simple tweeks
would really make my blog jump out. Please
let me know where you got your design. Bless you

Good day! This post could not be written any better!
Reading this post reminds me of my old room mate!
He always kept talking about this. I will forward this write-up to
him. Fairly certain he will have a good read. Many thanks
for sharing!

I like the helpful information you provide on your articles. I will bookmark your weblog and take a look at once more right here frequently. I’m quite certain I’ll learn many new stuff right here! Best of luck for the next!

What i do not understood is if truth be told how you are now not really much more smartly-liked than you may be now. You’re very intelligent. You realize therefore considerably in relation to this subject, produced me for my part imagine it from a lot of various angles. Its like men and women are not involved unless it?¦s one thing to accomplish with Girl gaga! Your personal stuffs excellent. All the time care for it up!

193542 835156Greetings! This really is my first comment here so I just wanted to give a quick shout out and tell you I genuinely enjoy reading by way of your blog posts. Can you recommend any other blogs/websites/forums that deal with exactly the same topics? Thank you so much! 711112

Nearly all of what you assert happens to be supprisingly accurate and it makes me ponder why I had not looked at this in this light before. This particular article really did turn the light on for me personally as far as this topic goes. But at this time there is actually one particular issue I am not really too comfy with so while I try to reconcile that with the central theme of your point, permit me observe just what the rest of the readers have to point out.Nicely done.

Good ?V I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs and related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Nice task..

Leave a Reply