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Plastics industry hails GST rejig; says lower taxes will benefit consumers

Plastics industry has 40,000 manufacturers and contributes approximately 8% to GDP of India

Press Trust of India  |  New Delhi 

Photo: Shutterstock
Photo: Shutterstock

The plastics industry has welcomed the reduction in rates across the spectrum of products from 28 per cent to 18 per cent, saying it will benefit end- consumers and would keep manufacturers competitive in the domestic market.

The move would help in reduction of price on products such as plastics floorings, fabrics, furniture, and and many other miscellaneous plastics products, Plastindia Foundation, the apex body of the industry, said.

The industry is one of the biggest beneficiaries of the rationaliation of slabs announced last week by the government, it added.

"The removal of anomalies in GST rates on plastics items is a right step taken by the government. The pinch of 28 per cent was felt across the industry and manufacturers were finding it difficult to stay competitive," said Plastindia Foundation President K K Seksaria.

Plastic industry in India is largely dominated by SME manufacturers. It has 40,000 manufacturers and contributes approximately 8 per cent to GDP of India.

First Published: Mon, November 13 2017. 20:19 IST