Incense stick makers unhappy over proposed 12% GST rate

The All India Agarbathi Manufacturers' Association (AIAMA) today expressed its displeasure over the recently-proposed GST rate of 12 per centon incense sticks and sought its revision.
AIAMA appealed to the Ministry of Finance to revise the rates considering its "adverse consequences" on the consumption of the product and employment.
The high rate on the basic home prayer product is not only expected to affect the common people, but also impact thelivelihoods of thousands of people involved in the rolling ofagarbathies, AIAMA said.
In most states, the VAT and Excise on agarbathies is currently 0 per cent as it is a cottage and village industry, and the same was expected from GST which is scheduled to be implemented from July 1, it said in a statement.

Noting that other pooja items were under 0 per cent GST, AIAMA said the industry is labour-intensive, and suggested that if the sector cannot be completely exempted from the GST, a minimum rate of 5 per cent can be levied at the most.
"Most of the agarbathi manufacturers are cottage and village units, and will be hit hard.. Many jobs and livelihoodsof women will be under threat.. The current government is looking at job creation and such a move will only becounter-productive," AIAMA President Sarath Babu said.