Tile industry leader appeal the Govt to reduce GST on tiles in budget

We request the government to lower the GST to 12 per cent from the current 18 per cent. There is a lot of expectation from the new Finance Minister to increase in the basic exemption limit from Rs 2.50 lakh to Rs 5 lakh.

Kamlesh Patel, Chairperson and Managing Director (CMD) of one of the major tile manufacturing firms in India - Asian Granito India, has demanded the government to lower down GST rate on tiles from existing 18 per cent to 12 per cent. 

"Tile is an essential commodity and not a luxury commodity and essential in housing and Sanitation hence we request the government to lower the GST to 12 per cent from the current 18 per cent. Power and fuel (largely gas) costs account for around 20-25 per cent of revenues for the tile industry and we would like the government to rationalise the same through lowering duties. To boost exports, we want the finance minister to introduce incentives for exports or exempt profit from exports as provisions earlier," said Kamlesh Patel.

Tiles industry in India is estimated at around Rs. 35000 crores to Rs. 40000 crore and growing at healthy single-digit employing over 6 lakh people in direct and indirect employment. Around 40 per cent of the industry is organized while 60 per cent is with small players in Morbi, Rajkot and other clusters. "The industry will continue to play an important role in the economic growth in the future and aim for global leadership in the industry and success of 'Make in India' added Patel. 

Indian Ceramic industry would aim for a green and environment complaint industry and we welcome the National Green Tribunal ruling to shift to greener fuel. Further, the industry wants the government to ensure maximum compliance for GST and strict implementation of e-way bill.

Special attention is required aiming at creating more employment opportunities in all sectors including strengthening Government departments, private sector and supporting the emerging entrepreneurs.

There is a lot of expectation from the new Finance Minister to increase in the basic exemption limit from Rs 2.50 lakh to Rs 5 lakh. If implemented in this budget, this will give a big boost in improving the consumption story and domestic demand scenario. The government in its first tenure had promised to cut the corporate tax to 25 per cent from 30 per cent at present and we would like to see some steps or direction in this budget. Besides, the sanitation coverage in rural India has gone up from 42 per cent Oct 2014 to over 70 and we hope that we should soon achieve maximum coverage.