- October 4, 2017
- Mrinmoy Bhattacharjee
India’s top fan manufacturers have requested GST Council to reduce the tax rate on electric fans to 12% from 28%. The manufacturers, under the Indian Fan Manufacturers Association (IFMA)banner,have argued that since fans are a necessity in India, they should not be clubbed with air-conditioners and taxed similarly.
IFMA comprises of eleven Indian fan manufacturers representing the organised industry. In a press release, the association has said that issues with respect to filing of online returns under GST still exist within the trade. “The demonetisation of high denomination bank notes had affected the demand in the fan industry. However, growth is on a recovery path now,” it said.
The association is also working with Bureau of Energy Efficiency, Energy Efficiency Services Ltd and Bureau of Indian Standards to develop a road map for manufacturing better energy-efficient fans that would help optimise power consumption and contribute to energy management.
“The star labelling program is expected to not only give an opportunity to all end users to make informed choices at the time of purchase, but also result in savings of approximately 30,000 MW of electricity over the next few years, as fans account for nearly 30% of the total power consumption,” IFFMA has said.
IFFMA members are also concerned that spurious branded fans are finding their way into the market and affecting the reputation and business of branded manufacturers and causing loss of revenue to the government. Accordingly, the association had organised 39 raids across the country during 2016-17 in an attempt to curb violation of its members’ copyrights. During 2016-17, members of IFMA achieved a consolidated production of 52.26 million fans, registering a growth of 9.08% over the previous year.