Tamil Nadu seeks tax revision on around 40 items under GST

State says firecracker industry will be hit by the 28% tax

Tamil Nadu has put forward a demand to reduce the tax rates for around 40 items under the Goods and Services Tax (GST), including the tax rate for job works, which has been reduced in a meeting held on Saturday, according to Tamil Nadu Finance Minister D Jayakumar.

The state government appealed to the Fitment Committee that the firecracker industry, which provides job to around 8 lakh people in the state, and which has around 1,170 of the total 1,221 production units that are micro industries, will be hit by the 28 per cent tax and a downward revision should be considered. Matchsticks made using wax and others should be brought under the same GST rate, he added.

He also said that the government has sought reducing the tax rate of wet grinder from 28 per cent to 12 per cent, fixing tax for biscuits at below Rs 100 per kilogram at 5 per cent and above Rs 100 per kilogram at 18 per cent, reducing price of compressor, steel and plastic furniture from 28 per cent to 18 per cent, recycled plastics from 18 per cent to 12 per cent, electric wires for household and farmers from 28 per cent to 12 per cent, non-air conditioned restaurants at 5 per cent and air conditioned restaurants at 12 per cent etc.

Components for tractors and autorikshaws has to be levied tax at 12 per cent and tyre retreading at 5 per cent. Rate for granite and marble should be brought down from 28 per cent to 12 per cent.

Outsourcing in educational institutions and life insurance services should be exempted from taxes. The state has also sought tax exemption for 20 litre drinking water cans, idli and dosa batter, fishing nets, spectacles and accessories and handloom and power loom weaving works. It has demanded reduction of tax rate on groundnut candy from 18 per cent to five per cent along with reduction in price of ubranded candies and pickles to five per cent are also in the list. Besides, the minister has also sought tax exemption for silk clothes and various ornaments made of silver, among others.