Hike in GST on red clay brick to hit artisans

teamKOLKATA: The proposed hike in GST on the sale of red clay brick by the Centre will affect the artisans and brickfield owners badly.

The hike will be effective from April 1. The members of Brickfield Owners Association across the state will stage a dharna in front of Jantar Mantar in New Delhi under the banner of All India Brick and Tile Manufacturers Federation (AIBTMF) on March 8 to protest against the arbitrary decision of the Centre.

The GST Council has proposed to hike GST on the sale of red clay brick from 5 per cent to 12 per cent that is by 140 per cent with Input Tax Credit (ITC) facility under Regular Scheme from 1 per cent to 6 per cent, that is by 500 per cent without ITC facility under Composition Scheme. The Floor of Regular Scheme has been lowered arbitrarily from annual turnover of Rs 1.50 crore of brick field to Rs 20 lakh.

A spokesman for BBOA said the red clay sector was already badly hit by acute crisis of coal, rise in the prices of coal and other raw materials and sharp fall in red clay brick demand due to the pandemic.