GST: A tough aasana for yoga mats

The goods and services tax is likely to prove a costlier aasana for yoga mats that will face goods and services tax rate of 28% as a distinction has been drawn between fitness equipment and sporting goods, which will face a lower rate of 18%.

Traders Association of Sporting Goods and Physical Exercise Equipment (TASGPEE) has represented to the GST Council to reconsider fitment of fitness equipment. “As per global prevailing taxation practices also, TASGPEE, the key body of traders and manufacturers from across the country requested the GST Council to keep sports goods and physical exercise equipment under the same GST tax rate of 12%.

The association has questioned the distinction between the two especially as they fall under one Harmonized System of Nomenclature (HSN). The HSN, a multipurpose international product nomenclature developed by the World Customs Organization, used as basis for custom tariffs treats fitness equipment as sporting goods/equipment world-wide, it said. The specific HSN No. 9506 is followed by 200 countries in tandem, it added.

“The equipment for physical exercise and fitness are an integral part of any sportsperson fitness regime,” it said, questioning the distinction. For example athletic equipment includes javelin, high jump mat, hurdles, relay baton, spiked shoes. Gymnastics equipment includes parallel bar, parallel beam, Roman rings, competition high bar, climbing rope, etc. General physical equipment includes yoga mat, yoga bricks, skipping ropes, dumbbells, weight lifting equipment, gym ball, treadmills, home gym, exercise bike.

The 28% bracket was for luxury products, the association said, adding that fitness equipment in a country like India that is grappling with lifestyle diseases cannot be placed with luxury products.