New Delhi : The Govt on Tuesday refused to waive 5% GST for the devices and rehabilitation aids for the physically challenged persons at par with the imports, with a contrived defence that the concessional rate will rather result in a win-win situation for both the users and the domestic manufacturers.
In a clarification, the finance ministry even insisted that the concessional GST rate would reduce the cost of the domestically manufactured goods as compared to the pre-GST regime. It pointed out that most of the inputs and raw materials for manufacture of these devices and aids attract 18% GST and the concessional 5% GST rate would enable the manufacturers to claim refund by availing the Input Tax Credit of GST.However, they will have to bear the burden of input tax if the GST on their products is zero, increasing their cost and provide negative protection for the domestic value addition in contrast to the import devices attracting zero duty.
