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Big Boost for Ceramic Industry: 18% GST on Ceramic Tiles, Marble, Quartz & Granite

India Ltd, one of India’s largest tiles companies has welcomed the GST council recommendation to lower the GST on Marble, Granite and Ceramic tiles of all kinds from 28% to 18% and expressed confidence that it will benefit over 700 ceramic tiles units from Gujarat.

GST on Ceramic tiles, Marble, Quartz and Granite lowered to 18% from 28%; Will encourage unorganised players to pay tax.

India Ltd, one of India’s largest tiles companies has welcomed the GST council recommendation to lower the GST on Marble, Granite and Ceramic tiles of all kinds from 28% to 18% and expressed confidence that it will benefit over 700 ceramic tiles units from Gujarat. The GST Council at its meeting on Nov 10, cut tax rates on 177 items, raised the threshold for small businesses for the Composition Scheme to Rs 1.5 crore and eased compliance burden for bigger businesses. 

“This is a big positive step for the ceramic industry as a whole and we appreciate the council for addressing our concerns. This will not only augment the sector growth but will also encourage unorganised players to pay tax which was facing problems after demonetisation and slowdown in real estate. Gujarat is a hub for over 700 ceramic tile plants and is world’s 2nd largest tile manufacturing zone. By this the Pricing Gap between Unorganised players and Organised Players will narrow down which will ultimately benefit the Industry as a whole. The major chunk of the country's entire ceramic production takes place in Gujarat alone with cumulative investment of Rs. 8,000 – 10,000 crores”, said Mr. Kamlesh Patel., Chairman and Managing Director, Asian Granito India Ltd.

“Lowering GST on tiles, marbles, quartz and granite will give push to Government’s infrastructure push —100 Smart Cities, Swachh Bharat Abhiyaan and Housing For All By 2022—along with real estate reforms could catalyse sectoral growth. The reforms will offer level playing field for all players in the industry, reduce logistic cost, and offer scope for inorganic growth as industry is likely to gain through consolidation post GST”, said Mr. Patel.  

The Indian ceramic tiles and sanitaryware industry is estimated to reach Rs. 34,000 crore by March 2018, out of which ceramic tiles account for around 85%. Morbi in Gujarat is India´s largest ceramic tile-making cluster with over 700 units manufacturing glazed tiles, sanitaryware and vitrified tiles. Approximately 70% of India´s total production of tiles is carried out by units located in Morbi alone.

India is now the second largest market for ceramic tiles after China with production at 750 million squre meters. Unorganised sector accounts for 60% of the industry while organised sector account for 40% of the ceramic tiles industry. A total of over 550,000 individuals are employed by the sector (50,000 direct).

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