Paint industry expects over 10% growth after GST rates reduction
Kolkata: Indian paint industry is expecting over 10 per cent growth in sales in the current fiscal year, following the lowering of Goods and Services Tax (GST) rates by 10 per cent, which is expected to boost demand, an official said here on Tuesday.
The GST Council has decided to lower the rate on paints by 10 per cent at its meeting on Saturday.
"We expect a 10-15 per cent growth in sales in this fiscal, particularly, after the reduction of GST rates. The lowering of tax rate is likely to push demand up," Indian Paint Association's Vice President Mahesh Anand said after attending the 55th Annual General Meeting.
The benefits of lower tax rates should entirely be passed on to the consumers but raw material prices and other factors are also important in taking a decision on lowering the prices, he said.
In his address at the Annual General Meeting, Anand said the Indian paint industry had been adversely affected during the month of June and July 2017 due to reduction in off take by the dealers on account of uncertainties and lack of familiarity in GST implementation.
The dealers in the Tier II and Tier III cities had initiated adoption of digital payment during the period. More importantly the 28 per cent GST levied on paints had also put the industry in a challenging situation, he added.