PLASTICS INDUSTRY WANTS ANOMALIES IN GST RATES ON SOME PLASTICS PRODUCTS OF COMMON MAN'S USE TO BE REMOVED
While whole heartedly welcoming introduction of GST, the plastics industry urged the government to remove the anomalies in prescribed GST on various plastics items of day to day use and common man's use. As per decision of GST council, items of day to day use were supposed to attract merit GST rate of 5% or lower standard GST rate of 12%. Some of the items were supposed to be under higher standard GST rate of 18%. Only luxury goods were supposed to attract 28% GST rate. But, it seems while fixing GST rate on many plastics products may have escaped attention of GST council. Pointing at the dangers of hurting the poor and middle-class of India, industry leaders made a plea that plastic products are mostly used by common man, poor and middle class and hence should be considered as merit item in everyone’s daily life. While some of the plastics products have been kept below 12% tax bracket, a large number of plastics items have been placed in 18% tax brackets while some are even being placed at highest tax bracket of 28%. The industry leaders feel that overall increase in tax will not only hit thousands of small & medium plastics industries but will also hurt the poor and middle class and lead to increase in prices of plastics products used by economically lower sections of society. Pointing to the anomalies, K K Seksaria, President, Plastindia Foundation, mentioned, a few items such as plastics furniture, tarpaulin woven & non woven raffia fabric, plastics for office and school supplies, PVC floorings, PE interlocking mats, vacuum flasks and other misc articles of plastics not mentioned elsewhere which are mainly used by common man have been kept under highest GST tax bracket of 28%. Plastics furniture, though light weight and low in cost but a voluminous article incurring huge transportation, storage and distribution costs, the cascading effect under GST rate of 28% will be very prohibitive. “Further, under present indirect tax regime, the Central Excise is to be paid only upto manufacturing stage but under GST tax regime the CGST impact will be right upto the end consumer.” added Seksaria.