PLY NEWS | JULY 2017
GST FALLOUT :
WOOD PANEL INDUSTRY IS NOT FULLY PREPARED
To be precise, a majority of finished items in wood article like plyboard, doors, plywood, floorings, etc. which are the primary needs of building materials are covered under 28% slab whereas 18% GST has been levied on PVC boards, Laminates, ACP, Swan timber, etc. In addition, a majority of raw materials which include face veneers, plantation logs, chemicals, foils and many other come under the 18% GST slab.
The 28% GST category is a direct hit on the backbone of at least 3000 units in the plywood industry. It is a slight struggle for semi & mid businesses whereas a grave risk for small ones. The high slab of 28% is like a heavy burden imposed upon a trade that employs lacs of workers, carpenters, labourers, retailers and small furniture units.
Though the long-awaited initiative of ‘Goods and Services Tax’ is to be put into practice from July, it seems the wood industry is not fully prepared to accept it. As a result, many appear to end their business in the mid-way instead of being able to contribute to the country’s growth.