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GST hits plastic biz in Hyderabad
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.
Hyderabad: 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 per cent and demanded the GST council to categorise plastic items under house hold items.
Currently, plastic moulded furniture is taxed at 17.5 per cent (Central Excise of 12.5 per cent and local VAT 5 per cent) 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.
“It would be difficult for the plastic manufacturers to continue their business if the 28 per cent GST is continued. Most of the 40 major manufacturing units are shut ever since the implementation of GST,” he said.
Traders across the city say that the sale of the Plastic furniture has been gone down by about 40 to 60 percent post GST.
Randeep Kumar, a retail dealer from Nampally said that the categorization of plastic furniture as luxury had led to decrease in business.
“Manufacturers are charging 10 per cent extra from us and on the other hand the sales have gone down. We are the most hit because of the GST,” he said.
Earlier, people used to buy chairs or other furniture in dozens but now the customers are resorting to buy only the required number, he lamented.
The GST has crippled the medium range industries in the city and many industries will be shut if it is not revoke, he added.
The city unit of the association is on strike against the GST categorisation of the plastic items that would continue till September 9. The association wanted to represent the issue in front of GST Committee which is expected to visit the capital on September 9.
Earlier, the All India Plastic Moulded Furniture Manufacturers Association (AIPMFMA) had also urged the GST Council to classify the plastic moulded furniture under household items attracting 18 per cent instead of the proposed 28 per cent slab rate.
A plastic dealer from Begum Bazar CH Shankar said that the supply from the industries was been disturbed for over a month now. He said, “The burden will be on common man since most of the buyers of plastic furniture are masses.
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.
