As the deadline for rollout of the Goods and Services Tax (GST) nears, companies from pharmaceutical, ceramic and engineering sector have scaled down production to reduce inventories. It is not viable to run ceramic unit on low capacity and units have to stop production completely. It will not be surprising if more units bring their shutters down temporarily,” said K G Kundariya, president, Morbi Ceramic Association.
Some of the ceramic tile makers in Morbi, which is India’s largest ceramic industry cluster, also have started closing their units ahead of the GST rollout. Ceramic items have been kept under the 28% GST slab, while currently the industry attracts 14.5% tax including excise duty. So far, 20 units have shut operations.