= Grievance Status hutps://pgportal,gov.ia/Status/rintDetail/QO/PRUMVRS8yMD. Details for registration number : CBOEC/E/2019/04761 Name Of Complainant ARUN PRAKASH D Date of Receipt 03/09/2019 Received By Ministry/Department Central Board of Excise and Customs Grievance Descri Lof3 05-09-2019, 16:28Grievance Status hhps://pgportal gov.in/Status/PrintDetail/QOJPRUMYRS8yMD. OVIS EQUIPMENTS PVT LTD is a Small Scale industry in operation since 1987 in the field of Railway Equipment. With the introduction of GST, we are the worst affected amongst other SSI Units, We suffer from inverted duty structure and also that our products classified under Chapter 86 are not eligible for duty refund. As a result we have 6.8 crores of our working capital stuck in GST credit. Our auditors have said that they cannot consider this amount as a current asset since we have failed to realize this amount post GST implementation. Our limits with our bank is 10 crores fund based. Our bankers are refusing to enhance our limits. We have been working closely with Railway board as well and have secured orders worth Rs.100 Crores. We stand sincerely to benefit from the Make in India program and take pride in contributing to the growth of our country. We are at a stage where the next generation of technocrats is set to take the mantle from the current management. Our inputs to the products have GST rates of 28 percent,18 percent and 5 percent. But our output duty is at 5 percent. We are facing imminent bankruptcy at the current rate. Every product we make an amount of Rs 12 to 15 lakhs gets added to the GST credit. We are the only SSI in this sector of industries. We are competing against the large scale corporates and foreign manufacturers. We supply to large conglomerates like the Aditya birla group, chettinad Group, Prism cements etc with a viable alternative to expensive machines. We have been successfully living upto their quality and performance standards over the last 3 decades. There is no foreseeable method by which we can offset our GST credit. Notification No 5/2017-C.T dated 28-06-2017 was issued under section 54(3) which specifies list of goods on which no refund under inverted duty structure is allowed. As of now only chapter 86 goods are singled out for denial of refund. This is gross injustice meted out to a SSI like ours. Our Unit employs about 80 people directly and 250 people indirectly through our sub vendor program. With so much of working capital locked up and increase in bank borrowings and reduction in profits we suffer from severe shortage of working capital. We would seek to draw your attention to this serious anomaly which needs to be addressed soon. We seek relief in one of the following ways. 1. Like the goods which were included earlier in Notification No 5/2017-Central tax (rate) dated 28th June, 2017 but by amendment Notification No 20/2018- Central tax (Rate) dated 26th July, 2018 have now been allowed refund we request that a similar benevolent view may be taken by the GST council and the refund may be restored 2. By Issuing a notification to the effect, with end use condition on inputs meant for use in ‘manufacture of 86 chapter goods which are taxable at 5 percent. 3. By allowing SSI unit ke ours refund of our accumulated credit. 4. By limiting non refund of our credit accrued only on supplies made to Indian Railways ( There is no clarity on the clarification received vide circular 30/4/2018-GST Wherein it is mentioned that (( Only goods classified under Chapter 86, supplied to Railways attract 5 GST rate with no refund of Uunutilised input tax credit ) Since the portal can effectively differentiate between supplies made to the Indian Railways and others this can be easily enforced. We plead to the powers that be, do not let our small scale industry go sick. We are effectively working in the other countries like Malaysia, Singapore, Myanmar and Congo to establish ‘ourselves and add laurels to our great nation. We seek clarity on the rationale behind such a ruling which effective shuts down any small scale industry striving hard to support Indian railways in any capacity whatsoever. Every railway equipment or track machine manufacturer big or small faces this quandary and should justifiably be relieved from the same, 20f3 05-09-2019, 16:28Grievance Status 3 0f3 Current Status Date of Action Remarks Please redress, Officer Name Officer Designation Contact Address, Email Address Contact Number a https://pgporta gov.in/Status/PrintDetail/QOJPRUMVRS8yMD. Under process 04/09/2019 Officer Concerns To ‘Smt. Archana Pandey Tiwari Principal Director General dggstnewdethi@gmail.com 01126702800 05-09-2019, 16:28