Granite units to feel GST sting

Granite units to feel GST sting
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Highlights

Already walking a tightrope, the small-scale granite sector is likely to face yet another storm with introduction of Goods and Service Tax from on July 1, 2017. Though it is touted as a simplified tax system, the GST could spell doom for the granite industry spread across Karimnagar, Warangal and Khammam.

​Warangal: Already walking a tightrope, the small-scale granite sector is likely to face yet another storm with introduction of Goods and Service Tax from on July 1, 2017. Though it is touted as a simplified tax system, the GST could spell doom for the granite industry spread across Karimnagar, Warangal and Khammam.

With granite tiles coming under the higher slab GST rate structure, the industry will face volatile demand in the international market. Apart from the industry and the large workforce depended on it, the consumers will also have to face its ripple effect.

As of now, the government is imposing 2 per cent CST on polished granite. But in the changed scenario, the industry has to cough out 28 per cent GST. Adding more woes to the problems of the small-scale granite slabs and tiles industry, the government included ceramics industry under 5 per cent GST rate structure. As ceramic tiles are used as alternative to granite tiles, the granite slabs industry is likely to face more problems.

There are at least 2,500 slabs and marbles units in the state with majority of them in Karimnagar, Khammam and Warangal undivided districts.

Karimnagar, which is famous for exporting tan brown, coffee brown and maple red granite to China, has around 150 granite quarries and 220 granite polishing units. Warangal, popular for black granite and other coloured blocks, has over 100 quarries and 60 slab processing units. On the other hand, Khammam has the highest number of tiles and slab units. In all, nearly 5 lakh people are dependent on the industry.

Small-Scale Granite Industries Association Telangana state president Rayala Nageshwara Rao told The Hans India: “Post-GST regime, the small-scale granite slabs and marbles industry will be affected badly. It’s not fair to treat granite slabs and marbles as luxury items as they are widely used by the middle and lower income groups.”

He demanded the GST Council to review the high taxation imposed on small-scale granite industries, which use only second and third grade raw blocks, when it meets again on June 3.

Warangal Granite Factory Owners Association president M Chakradhar Reddy said: “Granite slabs will become pricey and it would invariably affect sales. Already we are in a tight spot with the exports dwindling for the last few years.”

He said that majority of these units are based on second and third grade granite raw blocks while the first grade is being exported. Meanwhile, the granite units’ owners across the three districts have launched protests demanding the Centre to protect the industry from closure.

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