FinMin to examine private security industry demand for GST cut: MoS Finance Shukla
First Post , Aug 04, 2018
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 on Friday.
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.
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.
With reduction in the GST tax rate from 18 per cent 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.
Industry & Government must partner for Skilling, Reskilling and Upskilling of the workforce: Dharmendra Pradhan
Minister of State for Finance, Mr. Shiv Pratap Shukla promises relief from the 18% GST levied on the security services industry, at present
Skilling of manpower critical for Private Security Industry to grow at 20-25%; 3 Lakh personnel to gain Recognition of Prior Learning (RPL) in Private Security Industry
Sh. Dharmendra Pradhan, Hon’ble Minister of Skill Development & Entrepreneurship presides over the signing of MoU by 17 Private Security Agencies to train over 3 Lakh security personnel under the RPL Scheme
Dharmendra Pradhan says Government, industries should collaborate to skill, re-skill and up-skill workforce