GST to take toll on 10 lakh disabled people in Telangana
HYDERABAD: For over 10 lakh persons with disability in Telangana, levying of Goods and Service Tax (GST) on equipments that make their lives easier will be a rude jolt. Ever since the tax slabs for GST was announced in May, various sectors have come forward expressing their displeasure with the tax rates.
The GST council that met on May 16 to 18 has set a tax rate for Braille paper (8 per cent) and typewriters (12 per cent). For wheelchairs and assistive devices for the disabled, the GST will be 5 per cent and hearing aids will be taxed at 12 per cent.
Earlier, they were exempt from excise and custom duty. “This will have an adverse impact on the lives of persons with disabilities. If one wants to buy a quality appliance they are now going to be really expensive. Despite subsidies these items are still expensive for those who are disabled and are economically weak,” said M Pranav Kumar, Chief Executive Officer, Swadhikaar Centre for Disabilities Information.
“The problem is the definition under which these gadgets were brought under GST. It is about how words are interpreted,” he added.
Waive GST: Assn
“We want the GST waived off,” said Chokka Rao, member and Telangana affiliate of All India confederation of the Blind (AICB), himself a blind person, Rao reasons that the paper and the printing of braille textbooks for the blind must be made free of GST.
AICB members say that the cost of paper and that of printing for braille textbooks are already high, with GST, the costs would go up further making the printing of braille books infeasible. “We are poor and are dependent on the government and on social groups to survive.
How do they expect us to pay for these?” questions Rao. Pranav said: “We have written letters to the union and state finance ministers requesting them to make these items GST free. We already are struggling to gather money to buy equipments, now under GST they will be out of our reach. Disabled groups have given representations to the union government. I’m sure parliament will intervene and take a step.”
MSMEs fear the worst
Hyderabad: In its current form, the Goods and Service Tax (GST) rate structure for Micro, Small and Medium Enterprises (MSMEs) is likely to not be beneficial for all sectors under this grouping. A sector that could be hit the most could be the food processing industry due to a 18 per cent tax rate under GST, suggest experts.
MSME groups such as Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) have decided to send their representatives to request the GST council to review the tax bracket on various sectors. The GST council will hold a review meeting on June 3
“Most raw materials cannot be taxed as the government don’t tax the farmers so there is no input tax. However, under GST with no input tax involved the cost will now have to be slapped on the consumer resulting in a food price inflation,” said Ravindra Modi, President FTAPCCI.
“The 18 pc tax on processed food will adversely impact women entrepreneurs,” said Ramadevi Kanneganti , president Association of Lady Entrepreneurs of AP (ALEAP)