Economy

Fan makers want GST reduced

Our Bureau New Delhi | Updated on September 30, 2021

With the BEE Star labelling from July 1 next year, energy-efficient fans will optimise power consumption by households, but fan prices will go up by 25-30 per cent

The Indian Fan Manufacturers Association has urged the government to cut GST on fans, as the industry is gearing to implement the mandatory star-labelling of electricity efficiency. The industry body also believes a production-linked incentive scheme for the sector can help it become a key export hub.

With the BEE Star labelling becoming mandatory from July 1 next year, energy-efficient fans will optimise power consumption by households, but fan prices will go up by 25-30 per cent.

Ravindra Singh Negi, Chairman, IFMA said, the industry body has urged the government to reduce GST from the 18 per cent slab to 5 per cent considering fans are a commonly used product. He added that reduction in GST will help manufacturers invest in capacities and adopt new technologies.

“A reduction in GST rate can provide much needed working capital cushion and incentivise the industry in developing new fans as per the energy efficiency norms. With the necessary policy support, the industry looks forward to embracing sustainable and energy efficient technology and ensuring effective implementation of BEE Star Labelling Requirements,” Negi added.

‘On recovery path’

The industry, which witnessed sales washed-out in two successive summer seasons due Covid-induced restrictions, has been on a recovery path and is now almost back to pre-pandemic levels, Negi explained. Overall, 60 million fans are produced annually.

The industry body also pointed out that there is a need to focus on developing India’s export competitiveness. Atul Jain, Immediate Past-Chairman of IFMA said that currently the country exports 4 million units annually but there is potential for multi-fold growth.

Wider range

Anuj Poddar, Vice-Chairman, IFMA added that a PLI scheme for the fans sector can help create a more robust ecosystem for manufacturing for exports. He added this will also help in expanding the country’s capacity for non-ceiling fans for international markets

Published on September 30, 2021

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