Coir mattress producers want to lie on a lighter GST rate

GST rate cuts: HUL offers Rs119 crore as penalty for not passing benefits to customers

Rubberised coir mattress, the largest selling coir product in the country, is expecting a reduction in goods and services tax (GST) rates to spur sales and to trigger a shift from the unorganised sector. While GST on most coir products have been reduced, that of rubberised coir mattress has been fixed at 18 per cent.Earlier it came to around 16 per cent in most of the states. In Kerala, which accounts for the largest share of coir products, the tax on coir mattress was even¬†less. “The GST on many coir products has been brought down to 5 per cent from earlier 12 per cent. Since natural products rubber and coir are used in this product, we have represented to the Coir Board to recommend a GST reduction for coir mattress to 5 per cent,” said S Sundareshan, president of All India Coir Mattress Manufacturers Association.

The cut in GST is also expected to force a shift from the dominant unorganised sector to the organised one which engages in legalised trade.
“At present, organised sector of the mattress industry is about ?6,000 crore while the share of unorganised sector is almost double,” said Sundareshan. The rubberised coir mattress industry has been on the decline for the past few years as costly latexBSE -4.93 % led to dilution of latex in the product. The sales dipped with erosion in quality. “The sales of spring and foam mattresses improved as a result,” Sundareshan pointed out.¬†However, most of the major rubberised coir manufacturers are upbeat about the industry growth in the next few years.

Source:https://economictimes.indiatimes.com/markets/commodities/news/coir-mattress-producers-want-to-lie-on-a-lighter-gst-rate/articleshow/62277966.cms

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