Published on September 18, 2017
The market size of the paint business in India is evaluated at around Rs 350 billion. Industry players anticipate that in nearby future 12% development in business volume has to come.
The paint sector is predictable to modest earnings post within the range of 1 to 4 percent in Q1 FY18 which will eventually make an impact across the nation with its promising development.
Almost every industry suffered a little with the impact of GST on a short span basis but the industries tried to tackle the situation with their own wit. "It is no loss, no gain situation for the paints industry. At the existing rate structure, taxes on paints come to just above 28 per cent.
Some market players were anticipating that the GST rates will be fixed at the lower slab of 18 per cent since paints are required for protection against corrosion. Although paints taxed at 28 per cent, there would be no cess as it had not been classified as a luxury good. It was doubtful that GST rate of 28 per cent would have any impact on demand.
As per industry players at the time of implementation of GST there were some temporary disruption and sales have been affected but market again is coming in flow. Now the festive season is about to come which will also augment the demand of paints and coating.