Today the entire funiture market across India is closed on the important ffestival day of Eid because the Furniture trading fraternity feels that being in 28% Slab of G.S.T will harm the entire furntiure manufactuering and trading companies with such high slab from 12 % to 28 5. Furntiure business fraternity categorically telling media that it is not acceptable to us:
The decision of inclusion of ‘Furniture’ in 28% Slab of G.S.T and it being declared as an item of luxury, along with decrease of import duty on Furniture Goods to 10% is surely to bring doomsday to India Furniture Industry. It is also an irony when Government is promoting ‘Make In India’, this decision is surely against Spirit of ‘Make in India’, allowing the markets to be flooded by more imported Goods. In regards to this, we considered certain points, and demands:
- It is already well known fact that imported Furniture Goods have encroached its way up to 60% of total Market Share which has already become a threat for Indian Manufacturers. Now as mentioned above, the decision of Government to further decrease the import Duty will surely add to insurmountable problems presently faced by Industry. Foreign Goods will encroach the more of markets, which shall render 2 Lakh 70 Thousand Professionals adjoined with industry Jobless and this will be a BLACK DAY in history of Indian Manufacturing Industry.
- In today’s world, from Offices to Hospitals, from Schools to Homes, Furniture has surely become a necessity. Not only this, Indian usually Gift furniture for e.g. Bed, Sofa etc. in Daughters’ wedding, and moreover In Business premises, Office Furniture is a “must” need.
Then, this is totally incomprehensible, on what basis G.S.T Council declared Furniture as “Luxury”, whereas Gold, Silver and Diamond which are more of Luxury are surely underrated by G.S.T council.
- As request of Furniture manufactures, Furniture regardless Manufactured of Wood, Iron, Steel, Iron, Glass, Cane should be kept under G.S.T slab of 12.5% instead of proposed 28%.
- The said exemption of 75 Lakhs should be withdrawn, for benefit of Industry, as it will allow an alleyway for people to evade tax and will promote corruption.
- Furniture Industry is in unbreakable relation with professionals and worksmen. More than 85% of these professionals and worksmen belong to Low-income class and are unorganized. Hence, for their Benefit, all the Furniture Items should be included under 1 HSN code.
When Delhi Furniture Association and Members of Confederation of All Furniture Market Association of India not only considered abovementioned points, in addition, to also support the included demands, shall close all their Business Premises, Showrooms, Factories to Organize an Protest/Dharna on 26_27 June. Many of them will gather at Shaheed Bhagat Singh PARK, Furniture Market, for suggestions regarding this movement. After which, A Delegation shall present a memo to Finance Minister of the Country, Shree Arun Jaitely.
Ratinder Pal Singh Bhatia
Delhi Furniture Federation