COIMBATORE: Reduction of Goods and Services Tax (GST) for wet grinders has come as a welcome relief to the industry that had suffered four months of crisis.
Coimbatore fulfils 98 percent of the country’s wet grinder demand. The product being taxed 28 percent under the new tax regime had greatly affected business in the sector with over 10,000 workers temporarily displaced from their jobs. After several recommendations to the GST Council, the tax has now been reduced to 12 percent.
Speaking to Express, Coimbatore wet grinder Spare and accessories manufacturers association president Sastha M Raja said, There are around 60 industries and over 300 spare and accessories manufacturing units across the district producing more than 20 models of wet grinders. Price of domestic grinders ranged between `3,000 and `10,000. The high tax slab pushed the monthly sales down to 10,000 pieces from one lakh. We had submitted recommendations to the Council along with a detailed report. We are happy that it has been considered. Now, there is only a two percent difference between input and output.”
Stating that the sector in Coimbatore was making sales worth `500 crores every year, he noted that the State government’s free wet grinder distribution helped the industry attain rapid growth. The four months since the introduction of GST had pushed the industry to a crisis but the reduction would help them gear up for the Christmas-New Year-Pongal season, he pointed out and expressed confidence in growth.