Granite units in Andhra Pradesh, numbering more than 2,000, have been hit hard by the imposition of GST at 28 per cent and it is feared that many of them may have to down shutters, once GST comes into operation from July.
Granite units - most of them in the small-scale sector - are mostly concentrated in Prakasam district, as black galaxy granite is available in the district and fancied granite is also exported to different European markets from the district.
Other types of granite - of different hues - are available in Srikakulam, Visakhapatnam, Kadapa and Anantapur. These granite blocks are also exported as well as sold in the domestic market. After Prakasam, the largest number of granite units are located in Srikakulam district.
AP Small-Scale Granite Industries' Association president Y. Koteswara Rao says that the small-scale granite units are in a great crisis, in the aftermath of demonetisation, and now GST will force many of them to halt operations.
"GST at 28 per cent for all units, regardless of their size, is highly unrealistic. The bigger units may be able to absorb the shock, but the small units cannot operate with such crippling tax structure," he said.
Further, the granite industry is facing stiff competition from the vitrified tiles from Rajasthan and granite from China. "GST on vitrified tile units is kept at 5 per cent, as before, and GST on granite is pegged at 28 per cent. There is no level-playing field. Most of the granite units in the State will go out of business," he said.
Koteswara Rao has said several representations have been sent to the Union Finance Ministry, but of no avail.