The sale of grinders for home use is likely to be hit hard due to the increase in GST, thus leading to the livelihood of thousands of workers, directly and indirectly involved in the grinder manufacturing industry being in question.
Coimbatore: With the GST levied on grinders increased from 5 percent to 18 percent, the livelihood of thousands of workers will be affected. Therefore, the industrialists have requested the Central Government to immediately reduce the tax in the interest of the people.
Commenting on this, Coimbatore Wet Grinder and Parts Manufacturers Association (COWMA), former President Shasta M Raja said, "Coimbatore, an industrial city, is internationally renowned for the manufacture of grinders. More than 30,000 companies are involved in the production of grinders and spare parts and over 50 thousand workers are directly and indirectly employed in this sector. Grinders in various models comprising the five types for home use and two types for commercial use are manufactured in industrial establishments in the Coimbatore district.
At the beginning of the introduction of GST, the maximum tax for grinders was 28 percent. As a result, the tax levied on grinders was changed to 12 percent due to the fact that the damage caused to the people was brought to the notice of the Central Government with the help of the then Tamil Nadu Government. Due to continued demand thereafter, the duty was reduced to 5 percent. Thus, the grinder manufacturing industry was revived in Coimbatore. In such a scenario, the GST Council meeting recently revised the 5 percent tax imposed on grinders to 18 percent.
Due to this action, the grinder manufacturing industry is reported to be in dire straits. The livelihood of tens of thousands of workers is in question. Above all, this has affected the general consumer in a big way. For example, a grinder sold at Rs. 4,000 was charged an extra Rs. 200 when there was a 5 percent tax. However, with the tax increased to 18 percent, people now have to pay an extra Rs. 700 to buy a grinder.
Already due to the spread of Covid-19 waves, the poor and middle-class people have been reeling under a severe economic crisis. In a traditional Tamil home where idli and dosa batter is prepared at home with the help of wet grinders, an increase in GST will hit the sale of grinders and could lead to more people in Tamil Nadu opting for readymade idli and dosa batter. This could lead to the livelihood of tens of thousands of workers employed directly and indirectly in the grinder manufacturing industry being in question.
Since idli and dosa batter is now being used across the country, the Central Government should take steps to reduce the tax levied on grinders to 5 percent again. Necessary steps will be taken in the coming days to bring this to the attention of the GST Council," concluded COWMA former President, Shasta M Raja.