It is no-loss no-gain situation for the paints industry in India’s GST roll-out. At the existing rate structure, taxes on paints come to just above 28 per cent.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, the paints industry has said.
The short term disruption in supplies can be expected for a one to two month period, according to the Indian Paint Association.
The paint industry expects a volume growth of around 10 per cent in FY18; while value growth for the fiscal is expected to be a little over 10 per cent, aided primarily by recent price hikes.
The only negative side is the petroleum sector as it will be out of GST. Hence, the raw material which this sector consumes will continue to have the cascading effect of that particular source of input.
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