School bags to become costly after GST implementation
School bag manufacturers in Rajsthan’s Jaipur are upset with the steep GST rate of 28% that will come into effect from July 1.jaipur Updated: Jun 05, 2017 17:07 IST
School bag manufacturers in Jaipur are upset with the steep GST rate of 28% that will come into effect from July 1.
The Jaipur Bag Association said the move will not only have an adverse impact on the micro and small scale industries but also make the school bags costlier.
A large percentage of bags manufactured by the small scale industry sector are school bags. At present, 5% tax is levied on school bags made from canvas or cloth, but after GST, the steep rate of 28% will make the school bags costlier.
“The prices of school bags will go up steeply after imposition of GST,” said Suresh Agarwal, president of the association.
“We have sent a memorandum to Union finance minister Arun Jaitley requesting him to lower the taxes for bags,” he said.
Most bag manufacturing units that are in the micro and small scale sector are exempted from the excise duty and have to pay a low VAT of 5%.
Some parents too are upset with the government’s move to levy 28% tax on school bags.
“School bags are not a luxury item but should be considered an item of daily need. The government should either exempt it from GST or apply the lowest slab,” said Vimal Joshi, father of two school-going children.
The GST council has taken a decision to impose 28% GST on travel and sport bags and also included school bag that are made of leather, plastic or textile and will attract a high rate of tax.