Paint industry seeks reduction in GST rates

The domestic paint industry is expecting a 10% reduction in GST rates to 18% at the upcoming GST Council meeting. The move is likely to spur volume growth and also help the unorganised sector move to the organised segment. Paints currently attract a 28% tax.

According to Mr. Abhijit Roy, President, Indian Paint Association (IPA), a reduction in rates could lead to a volume growth of nearly 5%, as the cost benefits of the rate cuts will be passed on to the consumers. A 10% reduction will entail a mere Rs. 400-crore revenue consideration for the government, he added. “Most building construction material items attract 18 per cent GST. With revenue collections stabilising, we (IPA) feel that it is the ideal time to bring down the GST rates for the paint industry. Representations in this regard have been made to the Centre,” Mr. Roy said.