Strike by TN's fireworks factories against GST rate continues

5 Dariya News

Chennai 04-Jul-2017

Fireworks factories in the southern state were shut for the fifth consecutive day on Tuesday in protest against 28 per cent tax levied on them under the GST system, an office-bearer of their association said."Today (Tuesday) is the fifth day of closure of fireworks units in Tamil Nadu. The statements made by state and central ministers on input tax credit that can be claimed are not correct," Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA) General Secretary K. Mariappan told IANS.He said the state government should take over the fireworks industry in Tamil Nadu if the 28 per cent tax to be levied under the Goods and Services Tax (GST) system was not brought down.He said all the three fireworks manufacturers associations, lorry transport and fireworks dealer associations met the Virudhunagar District Collector and made their submissions regarding their demand.According to Mariappan, the government has taken into account the tax rate of 27 per cent paid only by 51 big factories, whereas the industry in general has been paying only 14.5 per cent tax."The statements by ministers that input tax credit of 8 to 15 per cent is available for the manufacturers is wrong. We have submitted to the government that the input tax credit available for the units is only four per cent," Mariappan said.