The 40 long years of discussion has bore fruit at last. The Goods and Services tax or GST is here, unifying the Tax system of our country and providing new opportunities of growth to every industrial sector. In spite of being subjected to 28% GST, the Earthmoving and construction equipment sector is seeing a new future, thanks to GST.
More than 80% of Earthmoving and other heavy machinery and construction equipment fall under the 28% GST category. Those include excavators, soil compactors, loaders, road-roalers, crushers, concrete mixers, as well as the off-road equipment like tippers, graders, dozers, shovels, trailers, commercial vehicles like trucks, lifters, escalators, and conveyors and so on. Despite this increase in the tax rate, the GST has brought the industry several benefits. Before, various taxes were levied on all these equipment that differed from state to state causing a lot of trouble in their transportation. But, the unification of the tax system has indeed solved all these issues and ushered in new growth opportunities for the industry. Let us discuss that in detail:
Benefits of GST on Heavy Machinery and Equipment:
■ Before GST came into being, there were different tax structures in different states of the country. Some levied basic entry taxes, Octroi and etc., while some didn’t even have entry forms. GST has resolved all those confusion.
■ Due to the elimination of the several sales depot costs, the manufacturers of equipment will save a lot on logistics and distribution.
■ The collection of C forms while transporting heavy machinery across state borders used to create a lot of problems for the manufacturers. GST put an end to that.
■ All the construction equipment manufacturers engaged in the domestic trade never benefited from VAT but, they will, from the GST.
■ Leasing and renting of equipment would become easier than before when both service tax and sales tax was imposed.
All in all, the construction business will get an overall boost with respect to their machinery and equipment. The single tax reform is going to solve their tax-related problems eventually, giving a rise in hope for a better future. Now, coming to the buyers, the question arises whether it is an apt time to invest in construction equipment. Of course! When would be a better one? This is, in fact, the best time to find earthmoving equipment for hire in India. There is no multiple taxes, no hidden layer. Everything is clear and upfront. GST has unveiled the complicated tax system and unified it all under its single banner. If you want excavators for hire in India, this is the right time. Go, search for the best Indian crushing company that is renting out the equipment at reasonable rates. You can always shuffle your options but remember reputation speaks.