Several Indian LED manufacturers have asked Indian government to consider implementing tax reforms to make it easier for companies to conduct business across different India states. The different tax systems implemented by Indian States was making it difficult to conduct business.
For example, in the Andhra Pradesh state the VAT structure can range from 5% to 14.5%, this makes it very hard for manufacturers when delivering supplies for large scale State projects, where there are high tax rates and the plant is in another State.
Indian LED lighting associations demanded for a uniform tax regime among different states, which would allow manufacturers to function with more predictability. In addition, Andhra Pradesh’s procurement demands for LED lights to replace incandescent lighting systems, and the State’s demands impact on the demand-supply situation for outdoor LED lights are also attract more attention.
Andhra Pradesh has requested manufacturers to supply 570,000 LED streetlights within 3 months. LED lighting manufacturers have asked for an extension to procure the required materials to meet large scale production and time for proper installation. They pointed that if the lighting upgrade was implemented in a rush, it could be damaging in the long run.