The unfavourable impact of GST on plastic furniture business in Hyderabad-Secunderabad


The new Goods and Services Tax (GST) is adversely impacting the business of plastic furniture in the twin cities since the commodity was classified as the luxury item as per the GST taxation system.

Manufacturers, dealers and other traders are complaining of the irrational taxation for the commodity that is used by the masses and at a mass level. This is thus directly impacting the small businessmen and common man ultimately.

With this, the plastic Moulden Furniture Manufacturers from twin cities are up against the GST levied upon them and vowing to strive against it until it is revoked. The manufacturers wanted the GST imposed on them to be reduced to only 12% and demanded the GST council to categorise plastic items under house hold items.

Currently, plastic moulded furniture is taxed at 17.5% (Central Excise of 12.5% and local VAT 5% ) in Telangana, Andhra Pradesh, Tamil Nadu and Pondicherry. Plastic Moulden Furniture Manufacturing Association general secretary Tallada Venkanna said that it was unscientific to categorise the plastic items under luxury.

Imposed GST has also reduced our margin of income and we are supporting the manufacturers’ demand.”

Hyderabad and Secunderabad are the cities that use plastic items more than other metropolitan cities across the country. There are about 40 odd plastic manufacturing industries in city.


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