• Notification Date: 11-11-2022
• Notification No: N/A

Brick-makers Urge the Government to Reduce GST

The brick makers are protesting for the last four months, raising their voice against the high Goods and Services Tax (GST) imposed on bricks. They have urged the government to reduce the rate of GST from 6 per cent to 1 per cent as earlier.

According to the statement of Omvir Singh Bhati, General Secretary of the All India Brick and Tile Manufacturers Federation (AIBTMF), the new rate of GST on brick has been effective from the 1st of April 2022. As per the statement of the GS, they are undergoing a tough phase and their kilns across the country are shut for the time being. In this current situation, it is difficult for them to run business in the absence of any demand and due to a high input cost. Hence, the AIBTMF has urged the government to reduce the GST charges. He further added that the kiln owners are protesting for the four months. Earlier the government was charging 1 per cent GST on businesses leading to a turnover of Rs.1.5 crore. But at present, the government has increased the rate to 6 per cent for the bricks industry only.

The government made the decision of increasing the GST rate in a GST Council meeting last year. The GST charges on coal, one of the ingredients required to make brick, has been increased to 12 per cent instead of 5 per cent as earlier. Bhati states that it is a labor-intensive country, hence the government must be aware of the consequences of hiking the GST rates by such high margins. About 3 crore workers have stopped working due to the rise in tax rates.

AIBTMF Vice President Atul Kumar Singh remarked that they have raised their concerns and forwarded their representations to the Ministries of Finance, Labour, Coal, etc., hoping for a better analysis of the situation.