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Demand to lower GST on Plywood made by Haryana Government

Reduced GST on Plywood Demanded by Haryana Govt

Haryana Government has demanded that the GST levied on plywood sector and spare parts used in farm equipment be lowered. This item would be on the agenda for the next GST Council meeting that would be held in Guwahati on November 10.

At present, Haryana Government wants the GST on plywood to be lowered from the current 28% to 18% and on spare parts from 18% to 12%. “As far as Haryana is concerned, there are two issues pertaining to the GST which are pending in the GST council. We are demanding tax rate on plywood be reduced from 28 per cent to 18 per cent,” said state Finance Minister Captain Abhimanyu.

Earlier this year in July, over 1,000 plywood units in Yamunanagar had gone on strike to protest against the 28% GST levied on plywood. The country’s plywood manufacturing hub is situated in Yamunanagar district. It is also one of Asia’s largest timber markets. Around 40% of total plywood production in this country is supplied by plywood units of Yamunanagar. “Apart from this, farm equipment attracts a tax rate of 12 per cent. But there are some spare parts which are used in them attract 18 per cent tax. This matter was referred to tax rate fitment committee. We want tax rate on spare parts which are exclusively used in farm equipment be reduced,” he said.

I expect Haryana’s demands will be discussed in the upcoming meeting of the GST council (the highest decision- making body of the new regime),” the minister said.