From agarbatti makers to publishers of children activity books and pickle makers, everyone is invoking interests of the common man and a possible adverse impact on employment to seek a waiver or reduction in the proposed GST rate.

Some have gone a step further to argue that an increase in levy on dry fruits and nuts from 5 per cent to 12 per cent will result in illegal trade from across the line of control and impact the domestic players.

Others have, however, confined themselves to the domestic market. As per the commitment of the GST Council, GST will subsume excise duty and VAT which has happened for most of the products but for agarbatti where the sum of excise, VAT is close to zero, GST is 12 per cent.

“A GST of 12 per cent would lead to a heavy cost escalation resulting in substantial decrease in usage of agarbatti, resulting in unemployment and collapse of the industry,” the All India Agarbatti Manufacturers’ Association said in a statement.

Although the lobby group did not point to hawan or puja samagri in its statement, sources pointed out that the product used during pujas was exempted from tax after the UP government raised concerns. Even pickle makers are complaining about the proposed 18 per cent levy, arguing that most states currently levy around 7 per cent tax. They are arguing that prices will rise by 10-14 per cent if GST Council does not rework the levy.

Similarly, the Federation of Educational Publishers in India has demanded a rollback in the proposed 12 per cent levy on children activity books and lab manuals.

Source: Times of India