New Delhi: Plastics industry has welcomed the reduction in GST rates across the spectrum of products from 28 percent to 18 percent, saying it will benefit end-consumers and would keep manufacturers competitive in the domestic market.
The move would help in reduction of price on products such as plastics floorings, fabrics, furniture, vacuum flasks bath and sanitary fittings and many other miscellaneous plastics products, Plastindia Foundation, the apex body of the industry, said.
The industry is one of the biggest beneficiaries of the GST rationaliation of GST slabs announced last week by the government, it added.
“The removal of anomalies in GST rates on plastics items is a right step taken by the government. The pinch of 28 percent was felt across the industry and manufacturers were finding it difficult to stay competitive,” said Plastindia Foundation President K K Seksaria.
Plastic industry in India is largely dominated by SME manufacturers. It has 40,000 manufacturers and contributes approximately 8 percent to GDP of India.