The Indian fan industry valued at a humongous Rs. 6,000 crores has expressed dissatisfaction about being placed in the highest GST bracket of 28%. The industry is urging the GST Council to lower the tax rate to 12% citing that fans are items of mass consumption and not luxury goods such as air conditioners. Furthermore, Rohit Mathur, the Chairman of Indian Fan Manufacturers’ Association has argued that even high-end mobile phones have been bracketed in the 12% tax slab.
Indian Fan Manufacturers’ Association represents several major brands such as Usha, Bajaj, Crompton, Havells, Orient, Anchor, Ortem, Surya, and Luminious, Polar and Anchor.
Presently, the tax burden for fan manufacturers is 20 per cent in excise duty free zones such as Himachal Pradesh, Uttarakhand and north-eastern states; and around 26 per cent in areas where excise duty is levied. Per rough estimates, the immediate impact on prices of fans would be in the vicinity of 4 to 5 per cent.