The Goods and Services tax (GST) Council met in Guwahati on November 10, 2017 for a round of discussion on removing several items from the high tax slab of 28%. The GST rate on ceramic tiles, marble and granite are reduced to 18% from 28%, encouraging more unorganised players to pay taxes.
According to Amit Shah, MD, Classic Marble Company (CMC), as the B2B players benefit with the Input Tax Credit (ITC), this announcement has created a positive sentiment for the industry. “This creates a level playing field for marble manufacturers as prices will remain competitive as compared to other available surface materials and the consumer will have a choice based on quality, material and not just prices,” added Shah.
The ceramic industry was drastically affected by the earlier GST rate, but the recent implementation of the new tax regime has provided much needed relief to the industry. Commenting on that, Kamlesh Patel, Chairman & MD, Asian Granito India Ltd., said, “The new GST rate will impel moves towards Government’s infrastructure initiative – 100 Smart Cities, Swachh Bharat Abhiyaan and Housing For All By 2022; along with real estate reforms could catalyse sectoral growth. The reforms will reduce logistic cost, and offer scope for inorganic growth as the industry is likely to gain through consolidation post-GST.”