<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Goods and Services Tax (GST) of 28% has severely hit nearly 650 manufacturers of ceramic tiles in Morbi. Prior to GST, ceramic products had 5% Value Added Tax (VAT) and excise duty of 12.5%. Players claim that high GST has made their products lose competitive edge over imports from China, which have risen over 25% since July, when GST was rolled out. On the other hand, export shipments from Morbi have halved in the same period.”Since July this year, the Chinese imports in the country have risen by about 25-30% and our exports have halved,” said KG Kundariya, president of Morbi Ceramics Association.He blamed high logistics cost within India for blunting the competitive edge of domestic players. “Shipment cost from China to southern India is lower than transport cost from Morbi to remote places of the country. This makes local products relatively costlier,” he said.It is to be noted that betting high on adaptation of technology, ceramic players have created a competitive edge in production, both in the domestic and export marketd, giving their Chinese competitors a run for money. But the introduction of GST that too at such a high rate has come as a jolt for them, just when they were strengthening their position.

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Morbi’s ceramic tile sector affected by GST