New Delhi: The CPI (M) Lok Sabha member P R Natarajan insisted on the abolition of GST on job works, at the Parliamentary budget session held in New Delhi on July 9.
New Delhi: The CPI (M) Lok Sabha member P R Natarajan insisted on the abolition of GST on job works, at the Parliamentary budget session held in New Delhi on July 9.
With the Parliamentary budget session underway, addressing Section 377 of the Code of Conduct of Parliament on July 9 in the Lok Sabha, MP P R Natarajan said, "All goods and services in the world are being carried out by many people in multiple stages through job segregation. To manufacture a product, an individual, organizations and countries make use of the best-specialized workers together or commercially gain the talents of others. Similarly, the products of many reputed companies in our country are being used by individuals to do the job."
"According to our Goods and Services Tax Act (GST Act), job work means work done by an individual on goods belonging to another person (Any treatment or process is undertaken by a person on goods to another registered person). The people who do such job works are known as job workers, produce a product which is either part or whole, and many small and medium-sized entrepreneurs are completely dependent on such job workers. The manufacturers supply the necessary raw materials and equipment to the job workers after which they produce it," explained the MP.
P R Natarajan also added that job workers neither buy anything nor sell anything, or invent anything new. The manufacturer receives the half-finished or finished goods from a job worker and then sells them to his customers, and are once again charged GST. Thus when a product is produced in a job work, it goes through many phases, and GST is imposed on it at every stage, which means one has to pay GST several times for the same product. All these GSTs are imposed on the purchaser of the goods and services. Similarly, the GST tax imposed on products manufactured by small and medium manufacturers, has affected their businesses, with many forced to close their businesses.
The MP also requested the Centre to take into account the above reasons and emphasized that they should take immediate steps to abolish GST on job works. "Only then can small and medium-sized entrepreneurs get a job and live their life without difficulties," he concluded.
With the Parliamentary budget session underway, addressing Section 377 of the Code of Conduct of Parliament on July 9 in the Lok Sabha, MP P R Natarajan said, "All goods and services in the world are being carried out by many people in multiple stages through job segregation. To manufacture a product, an individual, organizations and countries make use of the best-specialized workers together or commercially gain the talents of others. Similarly, the products of many reputed companies in our country are being used by individuals to do the job."
"According to our Goods and Services Tax Act (GST Act), job work means work done by an individual on goods belonging to another person (Any treatment or process is undertaken by a person on goods to another registered person). The people who do such job works are known as job workers, produce a product which is either part or whole, and many small and medium-sized entrepreneurs are completely dependent on such job workers. The manufacturers supply the necessary raw materials and equipment to the job workers after which they produce it," explained the MP.
P R Natarajan also added that job workers neither buy anything nor sell anything, or invent anything new. The manufacturer receives the half-finished or finished goods from a job worker and then sells them to his customers, and are once again charged GST. Thus when a product is produced in a job work, it goes through many phases, and GST is imposed on it at every stage, which means one has to pay GST several times for the same product. All these GSTs are imposed on the purchaser of the goods and services. Similarly, the GST tax imposed on products manufactured by small and medium manufacturers, has affected their businesses, with many forced to close their businesses.
The MP also requested the Centre to take into account the above reasons and emphasized that they should take immediate steps to abolish GST on job works. "Only then can small and medium-sized entrepreneurs get a job and live their life without difficulties," he concluded.