GST on plywood products likely to be slashed to 18%

Pradeep Sharma

Tribune News Service

Chandigarh October 31

Yamunanagar’s ailing plywood industry will get a boost with Goods and Services Tax(GST) on the plywood products set to be reduced from 28 percent to 18 percent. The move fulfil the long-pending demand of the industry.

The rate fitment committee comprising tax officials of the Central and state governments tasked with evolving a principle and a subsequent methodology to determine rates for various supplies under the GST has already approved the proposal. Besides, a proposal to lower GST on certain inputs for agricultural equipment from 18 percent to 12 percent has also been approved, sources told The Tribune here today.

The GST Council meeting at Guwahati from November 9 to 10, which will be presided over by Finance Minister Arun Jaitley and attended by Finance Ministers of various states, would take a final call on the twin issues, sources said.

The plywood, plyboard, medium density fibre board and particle-board industry is pegged at Rs 20,000 crore of which half of it is concentrated in north India. Yamunanagar is the hub of the plywood industry in the state whose representatives had met Capt Abhimanyu demanding lowering of GST following which the minister took up the matter at the council meetings.

In its recent meetings, the GST Council has tried to address teething troubles and implementation issues surrounding the new unified indirect tax regime. In October, the council slashed rates on 27 items, allowed businesses with revenue of up to Rs 1.5 crore to file quarterly returns (instead of every month), recommended the creation of a ministerial group to review the tax on AC restaurants and announced sops for exporters.

Yamunanagar a hub

The plywood, plyboard, medium density fibre board and particle-board industry is pegged at Rs 20,000 crore of which half of it is concentrated in north India. Yamunanagar is the hub of the plywood industry in the state whose representatives had met Capt Abhimanyu demanding lowering of GST following which the minister took up the matter at the council meetings.