GST-issues for Granite Industry
The most awaited rate schedules for proposed Roll out of GST is out. While most of the sectors experienced lower Tax than the current State VAT/CENVAT Regime, there is a huge blow to Granite Industry. Listing below the demerits of the proposed GST as below in Q&A Format Q: What is the proposed GST rate for Granite Industry. A : For Blocks(Chapter 25) 12% and Slabs(Chapter 25 and 68) 28 %. This includes hand cut granite Q: what is the current rate of Taxes A : Blocks 5% to 14.5% depending on states; Slabs 14.5% in most states. Interstate sale @ 2% against C form Q: It looks for Blocks the rates are on line with current tax regime, but why the tax for slabs are raised steeply A : Indian granite Industry consists 3 types of factory A) 100 % Export oriented Unit (EOU)- They typically pay 27 % Tax if the goods are sold in domestic market - there are about 100 such factories in India. Usually they export 95% of their production and sell only rejects /export s