Demand for reduction in GST rate from 28% to 18% on Plywood, Block Board, and Flush Doors
Author(s): City Air NewsNaresh Tiwari, Chairman, All India Plywood Manufacturers Association. Ludhiana, July 15, 2017: Naresh Tiwari, Chairman, All India Plywood Manufacturers Association has sent a request letter to Prime Minister Narendra...
cityairnews
Jul 15, 2017 12:30
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Naresh Tiwari, Chairman, All India Plywood Manufacturers Association.
Ludhiana, July 15, 2017: Naresh Tiwari, Chairman, All India Plywood Manufacturers Association has sent a request letter to Prime Minister Narendra Modi requesting for the reduction in GST rate from 28% to 18% on Plywood, Block Board, and Flush Doors etc under chapter 44 made from agriculture plantation wood and a substitute of forest wood. The letter reads as under:
As on today the Indian panel industry consists of 3500 units (small, medium, large) with various capacity and directly employing around 6 million people. Out of these 3500 units, 3300 units are small scale which were enjoying an exemption of excise duty upto 1.50 crore of their sale per annum. These units use Agro plantation wood.
On plywood net impact of excise duty was around 6% (after adjustment of CENVAT credits and excise duty paid by the units having clearance of more than 150 lakhs) and VAT was 9% (VAT ranges from 5% to 14.50% on different states, averaging 9%). On the basis, the maximum amount of tax collected by centre/ state government was not more than 15% whereas now it has been kept under the GST rate of 28% and input tax credit is just 3-4% on our product.
Even similar types of products like WPC (Wood plastic composite), Laminates (sunmica), are kept under GST rate of 8% and input tax credit on these products is 12-14%. Agro based products like Baggase boards, Jute fibre boards and Bamboo plywood are kept under the GST rate of 12%
Due to the massive GST rate of 28% the cost of our plywood products will increase tremendously and will affect the budget of one dreaming to have his own affordable house.
Moreover, our products are made from agro wood which is substitute of natural forest and if the industry is not promoted then this will lead to unemployment of millions of people and environment imbalance.
Keeping in view the above stated facts, we humbly request for lowering GST rate from 28% to 18%."
This information has been made available by Raghbir Singh Sohal of All India Plywood Manufacturers Association.
