The apex industry body represents the fan manufacturers in India comprising leading fan brands such as Usha, Bajaj, Crompton, Havells, Orient, Anchor, Ortem, Surya, Luminious, Polar and Anchor.
The immediate cost impact on fan will vary between three to eight per cent depending upon whether the manufacturing unit is located in excisable or excise-free zones if GST
rate is not eased and benefit of special zones are not been passed on in the new tax regime, Mathur said.
He said at least 50 per cent of the manufacturing units are mainly located in excise free zone of Himachal Pradesh, Uttarakhand and the north eastern States.
Currently tax burden on fan manufacturers for excise-free zone is about 20 per cent, while the same goes up to around 26 per cent for those operating from a exciseable area.
According to rough estimates unless government intervenes the immediate price rise of fans could be at least four to five per cent.
Total annual fan industry is worth Rs 9000 crore of which organised sector account for Rs 6000 crore.
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