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Krishnagiri granite factory owners demand 5 per cent GST

Granite industry owners in Krishnagiri District, who resorted to a three-day closure of their industries against the 28 per cent tax imposed on the industry under the Goods and Services Tax (GST), petitioned the Chairman of the GST Council through the Krishnagiri District Collector to reduce the tax to 5 per cent.

Krishnagiri granite factory owners demand 5 per cent GST
A demonstration by granite industrialists at Krishnagiri


The closure, related demonstrations and protests were jointly organised by four associations – namely the Krishnagiri Granite SmallScale Industries Association, Krishnagiri District Granite Factories Association, Bargur Granite Industry Association and the Shoolagiri Granite Industry Association. 

Krishnagiri Granite Small-Scale Industries Association president K. Mahesh told DTNext that 430 granite factories across the district function as small-scale industries and they were into value addition of granite stones. He said  30,000 people are directly and more than 2 lakh were indirectly employed in these industries. 

“We are into value addition of granite stones that have been rejected for exports. Under the previous tax regime we paid 5 per cent for purchase of raw materials and 14.5 per cent for value addition. Under GST we are forced to pay 12 per cent on purchase of raw materials and another 28 per cent for value addition as granite comes under the luxury segment,” he added. 

Mahesh said the industry transports 2,000 truckloads of granite to their customers in Tamil Nadu, Karnataka, Kerala and Maharashtra with the minimum value of the loads being priced between Rs. 2.5 lakh to Rs. 3 lakh. 

Stating that minimum business they do a month is Rs. 60 crore, he said that the business has been badly hit since July 1. Ranite industrialists said that customers are not ready to pay twice the tax compared to what they paid till June 30, as the value of the granite has increased by more than 20 per cent due to implementation of the GST. They lamented that they would be forced to permanently close the industries if the situation continued.

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