India is considering revisions to the Goods and Services Tax (GST) bill during the next parliament session which, if passed, will add around 2% to the country’s GDP.
The proposed new GST will replace a host of indirect taxes and create a common tax system for the national market. Analysts suggest the GST will give the plywood sector a boost, a RS 200 billion market supplied by hundreds of small and ‘unregulated’ enterprises. Around 75% of the Indian plywood market is made up of small and unregulated players.
Major ‘organised’ market players (such as Century Plyboards and Greenply Industries) said the GST would reduce the unfair advantage unorganised enterprises have in the plywood market.