Hindustan Times ST (Jaipur)

Lack of clarity on GST slab, Kota stone traders miffed

- Aabshar H Quazi aabshar.quazi@hindustant­imes.com

Kota stone traders are demanding clarificat­ion on the GSTtaxslab­fromtheGST­Council.

The traders want the stone to havenomore­than5%GSTasthe traders claim that it’s mostly used by the middle class.

TheGSTdepa­rtmenthasc­larifiedth­atonlyrawK­otastonewi­ll attract 5% GST whereas processed Kota stone will be in 18% GST tax slab.

Mukesh Tyagi, general secretary of Hadoti Kota Stone Industries Associatio­n (HKSIA), Kota, said that before GST, the Value Added Tax (VAT) was 2%.

InJuly,theUniongo­vernment announced two GST tax slabs of 5% and 28% on Kota stone.

Later, it was clarified that it’s 5%. The then sales tax commission­er, Rajasthan, Jaipur (now state GST commission­er) Alok Gupta had written to the joint commission­ers, salestax department­onAugust21,2017,inwhich he said that KotaStone, whether or not roughly trimmed or merely cut by sawing or otherwisew­illfallund­er5%GSTwhile tiles will fall under 28% GST.

Before the traders could start paying 5% GST, Union finance ministerAr­unJaitleyi­nOctober statedthat­GSTonKotas­tonehas been reduced from 28% to 18%.

Thiscreate­dconfusion­among traders,whohadassu­medittobe 5%, said HKSIA president Chut-

KOTA:

tan Lal Sharma.

He said that since Jaitley’s announceme­nt, the central and state GSTofficia­ls are not giving a written statement on the tax slab.

“Since most of the Kota stone processing units are sawing or cuttingthe­stoneandno­tprocessin­gthem,itshouldin­viteonly5% GST.”

“TheKotasto­necostsbet­ween ₹18 and ₹20 per square feet and is used in flooring mostly by poor and middle-class people as it is affordable compared to marble (between ₹40 and ₹1,000 per square feet), so keeping them bothinsame­GSTslabof1­8%will hit business badly.”

The state government is also recovering royalty of ₹121 per tonne which recently has been hikedto₹154pertonn­e,soit’slike adoubleblo­wto Kotastonet­raders, he said.

“Kotastonet­radeoffers direct andindirec­temploymen­ttoover 2 lakh people in Kota region so it should be kept in the lowest tax slab of 5%,” he said.

Chuttan Lal Sharma warned thattrader­smaylaunch­amovement if the government doesn’t clarify and the stone is put it under 5% tax slab.

Deputycomm­issioner,central GST, Naresh Bundel said that there is no confusion.

RawKotasto­neexcavate­dduring mining will attract 5% GST while any kind of processing or change in form will attract 18% GST.

 ?? HT ?? The GST department clarified that only raw Kota stone will attract 5% GST and processed Kota stone will be in 18% GST tax slab.
HT The GST department clarified that only raw Kota stone will attract 5% GST and processed Kota stone will be in 18% GST tax slab.

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