GST rate cut coming? Here is what is on the cards for security industry
The finance ministry will examine the demand of private security industry for reduction of GST from the existing level of 18 percent, Minister of State for Finance Shiv Pratap Shukla said today.
The finance ministry will examine the demand of private security industry for reduction of GST from the existing level of 18 percent, Minister of State for Finance Shiv Pratap Shukla said today. The government, he said, is fully conscious of the significant contribution of the private security industry in creating jobs for the poor, those who have migrated from the villages and ex-servicemen.
"We have received a FICCI representation on the issue and will do whatever is possible to reduce the 18 percent GST levied on the industry," he said at an event here.
He invited a delegation of the industry to discuss the matter.
There is a merit in the demand for reduction in GST rate to 5 percent as this industry generates roughly 5 lakh job yearly, said Rituraj Sinha, chairman of the FICCI Committee on Private Security Industry. Such relief, he said, will also greatly benefit the small players who have to bear the burden of interest costs, as they have to borrow to deposit GST in advance.
Besides, private security has emerged as an essential service to support the government machinery in homeland security activities.
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With reduction in the GST tax rate from 18 percent to 5 percent, pressure from customers on manpower reduction is likely to ease significantly resulting in job protection for private security guards, Sinha said.
Lower GST rate is also likely to boost volume of work orders, thereby the paving way for demand expansion and resultant increase in skill development activities as well as employment generation by private security sector, he added.
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