Unfair Gaps🇮🇳 India

Communications Equipment Manufacturing Business Guide

7Documented Cases
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All 7 Documented Cases

ITAR Export Control Violations and Penalties

₹83 lakhs per violation; $27 million fine example reported (March 2023); potential criminal jail time and permanent export privilege revocation

Communications equipment with military/aerospace applications falls under ITAR if listed on the US Munitions List. Indian operations create compliance exposure due to: (1) Foreign national employees/contractors cannot access ITAR data without authorization, (2) Technical drawings, CNC data, and specifications must be restricted, (3) Export licensing required for product transfer, (4) Non-compliance results in criminal charges and business shutdown.

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GST और अनुपालन दंड - अनुबंध से संबंधित

₹5-25 lakhs annually; GST disputes avg ₹2-5 lakhs; ITC disallowance 25% penalty on disputed amount (₹50K-₹10L+); PLI rejection risk ₹10-50 lakhs

Contract milestones often miss GST e-invoicing windows (mandatory for >50 Cr turnover). Manual ITC reconciliation with GSTR-2B fails because contract amendments/partial deliveries are not tracked against invoice metadata. PLI claims rejected due to incomplete milestone attestation.

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अनुबंध में बाधा से क्षमता हानि

₹30-100 lakhs per facility per year; 5-15% line downtime = 2-5 days/month idle capacity

Contract delays in utilities, land access, or vendor onboarding are discovered manually during monthly reviews. By then, production lines sit idle or ops teams burn overtime on workarounds. No real-time escalation prevents timely intervention.

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अनुबंध में गुणवत्ता शर्तों की अनुपस्थिति से दोष

₹10-30 lakhs per annum; 5-15% scrap/rework rate; ₹2-5 lakhs warranty claim reserves

Fragmented supply chains lack contractual quality commitments from local vendors. Defective parts, missed specifications, and delayed remediation occur because agreements have no enforcement mechanism or penalty for deviation.

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