India: Hopes that the GST rate would go down to 18%

Source:
MoneyControl/Fordaq
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The plywood, MDF and particleboard industry in India hopes to reduce the GST rate to 18% from the current 28%.

"The plywood, MDF and particleboard industry is very hopeful that GST rate will be brought down to at least 18 per cent which is very high at 28 per cent," Federation of Indian Plywood and Panel Industry president Sajjan Bhajanka said.

The Rs 20,000 crore plywood, plyboard, medium density fibreboard and particleboard industry is hopeful of reduction in GST rate to 18% in the forthcoming council meeting, Money Control reported.

"Several ministers with whom our members had interacted had assured to look into their plight and we hope in the forthcoming GST council meeting on September 9 at Hyderabad, a decision in this regard is expected," he said.

Laminates is the product that attracts 18% GST, even if it's supposed to be a premium product in the plywood industry. North India plywood industry players (50% of the total industry) have already announced strong opposition to the announcement.

According to Money Control, North India Plywood Manufacturers Association members said that most of the small players would have to close down with such high taxation burden. Besides, the 28 per cent taxation on plyboard is also hurting the festive mood in Bengal where the same has impacted in Durga idol pandal making due to sharp rise in price.

In India, plyboard is one of the major input materials in pandal and other decorations.

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