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GBMF: New Guidelines & 12% GST May Halt Red Brick Production

New GST Rate May Halt Red Brick Production
New GST Rate May Halt Red Brick Production

A new Central Government policy has been opposed by the red brick manufacturers in Gujarat which affects the sale of the commodity. They have the fear that the same shall reduce its usage and lastly their lives get affected by the action. Seeing the protest against the new GST compliance, the Gujarat Brick Manufacturers Federation has circulated that they will not start production in the new season that starts in October.

As per the statement furnished by Maherandra Prajapati, the joint convenor of the Gujarat Brick Manufacturers Federation’s agitation committee, “the central government sent notification in February and made some rules to be implemented next year.” As per the latest rule, all the brick kilns must be transformed into zig-zag patterns, which needs large investments and is not possible for all manufacturers.

“According to the new rule, brick manufacturing units should be at least 1 km away from other units,” he articulated. 800 mt from the residential areas apart from that the government restricted the usage of red brick in those buildings which are bigger than 20,000 sq mt.

According to the GST, the composition scheme’s GST rate surged from 5 to 12 per cent and the lump sum tax is still in effect. From 1% to 6% the rates would have surged beneath the latest compliance. We asked to eliminate all the latest notifications. If the same does not been applied then the small manufacturer would be unable to perform operations.

About the problems that arise the Gujarat Brick Manufacturing Federation has also written to Prime Minister Narendra Modi and Gujarat Chief Minister Bhupendra Patel. The government has thought that it is good to make fly ash bricks however the federation mentions that their durability is lower as compared to the red bricks.

Read also: Impact of GST on Real Estate Sector in India

There are 1200 old brick kilns in Gujarat, each producing 30 to 40 lakh bricks per year. There are more than 5 lakh people who are working in this field.

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