Wet grinder manufacturers here plan to meet Finance Minister Palanivel Thiagarajan next week and explain the impact of 18% GST on wet grinders.
R. Soundarakumar, president of Coimbatore Wet Grinder and Accessory Manufacturers Association, said sale of wet grinders had dropped about 70% in the last four or five months. With steep hike in raw material prices, the cost of the end product increased by 35% to 40% in the last one year. The hike in GST to 18% had led to prices going up ₹500 more.
Wet grinders were initially placed at 28% GST and reduced to 5% in 2019. However, the input tax refund that each unit should get increased after that. The average refund arrears for each unit since 2019 was almost ₹25 lakh. “It is equal to a month’s sales for each unit,” he said.
The Central government increased the GST for wet grinders to 18% in the last GST Council meeting. “Sales was already down and the high GST has affected business more,” he said.
The COWMA office-bearers were trying to meet the Finance Minister of Tamil Nadu next week to explain the problems faced by the sector and the impact of the GST, he said.
Published - October 25, 2022 06:52 pm IST
