ABSTRACT

TOPIC-IMPACT OF GST ON GRANITE INDUSTRY

Background

The granite and marble industry is highly fragmented and unorganized. It also has high exports
for raw as well as processed blocks. Granite accounts for about Rs. 13,000 crores of exports and
domestic maybe around the same though, some part of it is not accounted for. This is
concentrated in Karnataka, Andhra, Orissa etc. Marble industry is largely concentrated in
Rajasthan & Gujarat. India is the largest producer of natural stone in the world though China has
the highest exports, more than twice the value of Indian exports. The value-added products in
this industry multiply the value which is slowly growing and developing in India.

GST implementation is likely to face yet another storm in granite sector. It can lead to crisis of
declined exports to international market. India is one among the leading countries in mining and
export of granite and has rich granite reserves. The total industry size is estimated to be
approximately US $85 million. There are around 100 manufacturers in India for granite and also
a few trading companies.

In the non GST regime, the government was imposing 2% CST on polished granite and 14.5%
on raw granite. With the introduction of GST, tax rates have been elevated to 28% on polished
granite and reduces to 12% on raw granite. Adding more to the distress of small scale granite and
tiles industry, the government included the ceramic industry under the 5% rate structure. As
ceramic tiles are used as an alternative to granite tiles, the granite industry will face distress and
certain hurdles in the near future.

DHRUV RAJPUROHIT-2014036

AKANKSHA BAMMI-2014008