Idol makers, cloth merchants hopeful of tax exemptions
GST COUNCIL State industry minister Rajpal Singh Shekhawat to raise traders’ concerns at meeting today
With the imposition of goods and services tax (GST) virtually shutting down the idol manufacturing industry in Rajasthan, the idol makers are pinning their hopes on the GST Council meeting scheduled in New Delhi for Saturday.
With the government imposing a 28% tax on idols manufactured from marble under the new tax regime, the idol manufacturers are up in arms. Earlier, there was no tax on manufacturing of idols.
State industry minister Rajpal Singh Shekhawat will represent Rajasthan in the GST Council meeting.
The GST Council, comprising Union finance minister Arun Jaitley and state finance ministers, will consider the taxation issues raised by sectoral bodies, along with a review of the implementation of the GST.
“We have met Santosh Gangwar (Union minister of state for finance), who has assured us that since the idols are of deities, an exemption will be granted,” Satya Prakash Natha, spokesperson of Moortikar Sangharsh Samiti told Hindustan Times.
“We are ready to pay 12% tax on sculptures, but want total exemption on idols of deities. The state ministers have also assured us that Rajasthan government will push for GST exemption for idol making industry,” he said.
One problem with the imposition of GST on marble idols is that the clients sometimes reject the idol even for slight manufacturing defect. “If we have to pay GST in advance for the goods manufactured, it will be very difficult to adjust the amount
We are ready to pay 12% tax on sculptures, but want total exemption on idols . Ministers have assured us the state government will push for GST exemption for idol making industry
against idol that have manufacturing defect,” Natha said.
With finance portfolio in Rajasthan being held by chief minister Vasundhara Raje, state industry minister Rajpal Singh Shekhawat will represent Rajasthan in the GST Council meeting. Apart from idol makers, other trade bodies have also approached the government regarding the implementation of GST and also for reduction of rates.
The cloth merchants, who had gone on a strike in last week of June ahead of the GST implementation, are also hoping for exemption. The centre has imposed 5% GST on textile.
“This is for the first time in the past 70 years that garment traders have been asked to pay tax. Cloth is a basic necessity and should be exempted from taxes,” Cloth and Sari Traders Association president Omprakash Taneja told Hindustan Times.
The state government will also take up the issue of taxes on red coral, a semi precious stone, which is now attracting a GST of 28%. Red coral, which is extensively used by jewellery industry in Rajasthan, is the only semiprecious stone attracting 28% GST..
The new tax regime has dismantled state barriers to create a single national market, giving a boost to a host of economic and development goals.
The switch to a single tax from 1 July has thrown up some surprises for consumers and businesses. Consumers for the first time are getting a measure of the total central and state taxes levied on a product,ending a host of hidden and embedded taxes .