Tiles, Sanitary Ware, and Other Ceramic Products Are Essential, Not Luxury Items
Morbi: Following the central government's announcement to simplify GST into two slabs and bring several items under the 18% tax bracket, Laghu Udyog Bharati has urged the reduction of GST on ceramic tiles and related products from 18% to 5%. They have made a representation to Union Finance Minister Nirmala Sitharaman in this regard.
In their representation, Laghu Udyog Bharati stated that Morbi is the world’s second-largest ceramic production cluster, housing over 900 units that directly and indirectly employ more than 10 lakh people. This industry plays a significant role in the Indian economy, with an annual turnover exceeding ₹70,000 crore and an export turnover of over ₹15,000 crore. Additionally, marble, an alternative to tiles, is 40–60% more expensive, and there are no other viable substitutes for tiles.
Furthermore, tiles and sanitary ware are no longer luxury items but essential necessities for the common people. Over 90% of India’s population belongs to the poor and middle classes, for whom building a home is a dream. Reducing GST could lower overall construction costs by 7–8%, enabling millions of families to realize their dream of owning a home and supporting government initiatives like the Pradhan Mantri Awas Yojana.
Most ceramic industries in Morbi fall under the MSME (Micro, Small, and Medium Enterprises) category and operate on thin profit margins. A reduction in GST would strengthen these industries and enhance their competitiveness. Laghu Udyog Bharati expressed hope that the central government would soon take a positive decision on this matter.