GST cut a huge relief to granite industry

Units reeling under falling exports and declining market share hope for resurgence

The granite industry, which came up a decade and half ago in integrated Karimnagar district providing employment to several thousands of labourers, is relieved with the Union government reducing the Goods and Service Tax (GST) from the existing 28 per cent to 18 per cent.

The granite industry, reeling under crisis following decline in exports, had received a severe jolt with the GST council announcing a tax of 28 per cent on polished granite and 12 per cent on the raw granite blocks. Earlier, before GST, tax on the polished granite was only 2 per cent and raw granite was charged 14.5 per cent tax.

Following the decline of raw granite exports to the international market, the granite industry was solely relying on the polished granite in the local market with a low tax of 2 per cent. But, the imposition of GST tax of 28 per cent completely affected the industry with steep decline in sales.

Some units were literally on the verge of closure as the buyers preferred China-made tiles instead of polished granite stones because of high price.

Decline in the exports led to closure of around 50 granite quarries.

Sensing that the granite polish units would be also closed due to higher GST, the granite industry representatives represented the matter to Finance Minister Eatala Rajender.

Accordingly, the State Finance Minister prevailed upon the GST Council and ensured that the GST was reduced from 28 per cent to 18 per cent.

The local granite quarry and polish unit owners thanked the Union and State government for reducing the GST and sought further reduction to at least 12 per cent to help improve the business.

Venugopal Karwa, managing director of Sri Venkatesh Granites in Odyaram village of Karimnagar district hoped that the polished granite would again start moving in the local markets and benefit the industry and also provide employment to several labourers.

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Printable version | Apr 8, 2020 2:37:58 AM |

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