Published on June 28, 2017
The Indian paint and coating industry is riding high with the expansion in the housing segment and improving infrastructure throughout the country. The Indian automobile industry is also performing remarkably well and will benefit the paint industry players.
Market players have said that for the next five years it is anticipated that the automobile industry will grow to 8 to 9 percent in compare to last year’s growth level. With the intensification of automobile industry it is safe to predict a nine to ten percent growth rate for the Indian paint industry in the next five years.
As from 1st july 2017 government keen to apply GST but for paint Industry the decision of the GST council to tax paints at the highest slab of 28 per cent would not differ from the existing rate which was just above that.
It is no-loss no-gain situation for the paints industry. At the existing rate structure, taxes on paints come to just above 28 percent, said by members of IPA.
As per Industry players, after the application of GST there could some temporary disturbances initially which would die down shortly after its implementation. Sales might also suffer during that period of disruption, adding that companies having inventories of more than one year would also incur some losses. It was unlikely that GST rate of 28 per cent would have any impact on demand.