• Notification Date: 24-11-2022
  • Notification No: N/A

Infrastructure Sector demands Rationalisation of GST

The infrastructure industry raised certain demands on Monday. It has demanded rationalization of Goods and Services Tax (GST), easier bank credit, and a hike in public expenditure at the pre-budget meeting with Finance Minister Nirmala Sitharaman. Besides, the Cellular Operators' Association of India (COAI) has made some urges in its presentation to the finance minister. It has sought a reduction of levies and taxes on the telecom sector amid new-age 5G networks and services rollout across India. 

Director General of COAI SP Kochhar has demanded cost reduction in the online meeting of the infrastructure industry experts with the finance minister. the telecom industry also demanded rationalization of GST and a reduction of license fee to 1 percent from 3 percent. It has also appealed for a reduction of customs duty on equipment.   

Telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea are members of COAI. According to the report, the representatives of the auto industry have demanded the government's support in terms of long-term policies to establish India as a strong electric vehicle (EV) manufacturing base. They have also pitched for support from the Government to the EV companies for reskilling the workforce. 
The Federation of Indian Micro and Small & Medium Enterprises (FISME) felt that the bank loan rating (BLR) requirement acts as a great dampener in the growth of MSMEs. It pitched for immediate intervention in setting up a joint committee of the RBI, banks, and stakeholders. It would help in developing a unique rating model for MSMEs, that fully focuses on solvency. 

Industry body PHD Chamber of Commerce and Industry (PHDCCI) suggested that in order to achieve state-of-the-art infrastructure, infrastructure investments in the country must not be less than 10 per cent of the GDP. This would help India to become a developed economy by the year 2047.