Over 2,000 small and big marble processing units in Kishangarh and Makrana area are in fear of losing business after Goods and Services Tax (GST) Council finalised the new tax rates.
The GST on marble has gone up to 28 % from the current tax incidence of 5% under the new indirect tax regime; this has upset marble traders in Kishangarh and Makrana area, who are scared of losing business.
“The effect would be colossal. Over 70,000 people directly and many indirectly — like-transporters, small and bulk traders — are associated with the marble business and will have to bear the brunt of this,” said Suresh Kumar Tak, president, Kishangarh Marble Association.
According to industry sources, the issue has been raised before the government and NITI Ayog officials to keep the tax rate low on marble products to save this core industry in the state.
“Till now, the value added Tax (VAT) was 5% but an over fivefold rise in tax (28%) will make prices of marble exorbitantly high,” said Vimal Garg, a marble businessman in Kishangarh.
“Let me explain if someone buys marble worth ₹1 lakh, he pays ₹5,000 as tax. After GST, he will now have to pay ₹28,000 as tax for the same amount of marble purchased,” added Garg.
{{/usCountry}}“Let me explain if someone buys marble worth ₹1 lakh, he pays ₹5,000 as tax. After GST, he will now have to pay ₹28,000 as tax for the same amount of marble purchased,” added Garg.
{{/usCountry}}It is estimated that over ₹50,000 crore is invested in the marble industry in the state. “If business takes, only mines will not close but processing units will be forced to close their shutters,” said Mukesh Agarwal of Krishna Marbles. “That will set recession into motion rendering thousands jobless,” he added.
The GST Council has finalised tax rates for the bulk of the items and the new tax law scheduled will roll out from July 1.