Plastics industry welcomes reduction in GST rates

 Plastics Industry, dominated by SME manufacturers, has welcomed the reduction in GST rates across the spectrum of products from 28% to 18%. Plastics products such as plastics floorings, fabrics, furniture, vacuum flasks bath and sanitary fittings and many other miscellaneous plastics products (not specified elsewhere) will be charged a GST of 18%. The industry is happy with the removal of anomalies as it will benefit the end-consumers and also keep the manufacturers competitive in Indian market. The plastics industry is one of the biggest beneficiaries of the rationalization of GST rates announced by the government last week.

Explained K K Seksaria, President, Plastindia Foundation, “The removal of anomalies in GST rates on plastics items is a right step taken by the government. The pinch of 28% was felt across the industry and manufacturers were finding it difficult to stay competitive.  We are thankful to the Prime Minister, Shri Narendra Modi, Finance Minister, Shri Arun Jaitley and the members of GST Council and all state finance ministers for this reduction. Indeed, continuous persuasion by industry leaders from Plastindia Foundation, its founder members and all stakeholders with political and bureaucracy leadership involved in the decision of GST rates has benefited the entire industry and common man.”

Plastindia Foundation is the apex body of Plastics industry in India and has been taking up the issue of the impact of high GST rates with the government having made several representations to DCPC, central government, state governments, GST Council, political leaders, etc ever since the GST rates were announced in May this year.

Several industry players were relieved by government’s decision. V K Taparia, Chairman of Plastindia Foundation’s sub- committee on GST and Executive Director  of Supreme Industries Limited said, “We commend the Government on taking the right decision to bring all products of Plastics, which are primarily for the use of the common man at 18% GST, which is also the GST for Plastics raw materials. This will also avoid anomalies and increase compliances.  Plastic products will become affordable for the common man, thereby reducing his burden, allowing him to make his life more comfortable”

Mr. Surender Chowdhury and Shri Jayesh Rambhia,  the plastics industry stalwarts who regularly took up the case of rationalization of GST rates said ,  “The decision to reduce GST on plastics products will positively impact consumer’s ability to manage  household expenses better. Over 40,000 SME players in plastics also heaved a sigh of relief on announcement of reduction in GST rates. ”

Echoing their sentiment, Rajeev Chitalia, former President of PLEXCONCIL said, “the SMEs are relieved as increased tax rates were making them uncompetitive globally. If India has to meet its exports targets of $900 billion by 2022, then Plastics industry has an important role to play. It is important that the players need to be incentivized. SMEs are a backbone of plastics industry. The reduction in GST rates will help them in succeeding in their business better in India as well as abroad.”

The plastics industry is among the largest industry sectors with investment in Machinery USD 5 Billion, industry has over 40,000 manufacturer’s and contributes approximately 8 % to GDP of India. The industry has contributed in the import-substitution process and Make in India initiative across dozens of industry  segments.