Kolkata, Mar 5: Bengal Brick-Field Owners’ Association (BBFOA) has urged the Centre to immediately roll back the proposed hike of GST on sale of red clay bricks or else it would spell a doom for the entire industry, which comes under small scale rural cottage sector, and render thousands of people unemployed. The proposed hike to 12 per cent from existing 5 pc will be implemented from April, 1, 2022, the BBFOA said in a statement on Saturday.
” Unfortunately, the GST Council, in September 2021 has proposed exorbitant hike in GST on sale of red clay brick – (i) from 5% to 12% i.e. by 140% with Input Tax Credit (?ITC?) facility under Regular Scheme and (ii) from 1% to 6% i.e. by 500% without ITC facility under Composition Scheme. (iii)
The Floor of Regular Scheme has been lowered arbitrarily from annual turnover of Rs.1.50 Crore of brick-field to Rs.20 lakh,” the statement elaborated.
” The proposal for an exorbitant hike of GST on sale of red clay brick will spell closure of the brick sector, if implemented,” it added.
It also said the sector is the determining factor of rural economic growth as it is a major employment generator and the Government revenue earner.
” The proposed GST rates are arbitrary, unjustified and unilateral ?thrust by the Government without discussion with the red clay brick sector ? reflects dictatorial, non-democratic action of a democratically elected government,” the BBFOA statement maintained. It said the industry already was having numerous difficulties to carry on business owing to a number of issues ? acute crisis of coal supplies with price hiked, and cost escalation of other raw materials and fall of clay brick demand in post Covid-19 recession in construction industry. The BBFOA also decided to stage a protest demonstration in front of Jantar Mantar, New Delhi on March 8, under the umbrella of the All India Brick & Tile Manufacturers Federation (AIBTMF).. (UNI)
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