Finance ministry to examine private security industry demand for GST cut: MoS finance
The Economic Times , Aug 03, 2018
The finance ministry will examine the private security industry's demand to cut GST rate from 18 per cent at present, Minister of State for Finance Shiv Pratap Shukla said here.
The government is fully conscious of the significant contribution of the private security industry in creating jobs for the poor, those that have migrated from the villages, and ex-servicemen, he said.
"We have received a FICCI representation on the issue and will do whatever is possible to reduce the 18 per cent GST levied on the industry," he said at an event here.
He also invited a delegation of the industry to discuss the matter.
There is a merit in the demand for reduction in GST rate to 5 per cent as this industry generates roughly 5 lakh job yearly, Rituraj Sinha, chairman of FICCI committee on private security industry, said at the event.
Such relief, he said, would 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.
Private Security has emerged as an essential service to support the government machinery in homeland security activities. With reduction in the GST tax rate from 18 per cent to 5 per cent, pressure from customers on manpower reduction is likely to ease significantly, resulting in job protection for private security guards, Sinha said.
Lower Goods and Services Tax rate is also likely to boost volume of work orders, thereby 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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