Regarding a huge loss in the sports manufacturing business, the traders and resellers have demanded to quash the Goods and Services Tax (GST) levied by the central government. According to marketers, their business went low due to the misunderstanding of the new taxing system. According to information most of the sports goods comes under 18 percent bar of the tax. Wherein value added tax (VAT) was only 6 percent on almost all sports items. The manufacturers said that with the increasing prices, their business has fallen dramatically and the government should reduce GST rates on sports goods.Serving almost half of the country’s demand Jalandhar manufacturing industrialists said that they have given a memorandum to Punjab Finance Minister and also submitted it to GST commission in this regard. They said we have demanded the reduction in the GST slabs. Meanwhile, traders complained that the demand for sports equipment, be it cricket bat, balls, football, volleyball or badminton racket, has declined. A trader said that the business has declined to that level, we are unable to get any bulk order for a long time. An owner of Kicker Sports, said, “The cost of sports items has drastically increased because of the 18 pc GST on sports bag and shoes. Earlier, we used to pay only 6 pc VAT. Our sales have decreased by over 50 pc.” He added that prior to the introduction of GST, his firm used to manufacture 2 lakh bag every month. However, at present, they hardly manufacture 80,000. The manufacturers demanded that the sports goods should be placed in the slab of 5 or 12 percent. They also said that small manufacturing items like bags, helmets and other sports items should be included in less than 5 percent slab. Meanwhile, traders claim that the sports equipment manufacturing industry in Jalandhar caters to approximately 55 pc of the country’s demand. The industry is estimated to be worth Rs 1,800 crore and provides employment to nearly 50,000 people.
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