Sivakasi fireworks units seek slash in GST rate

Chennai: The Tamil Nadu Government on Wednesday informed the State Assembly that it would take necessary steps on the demand of the cracker manufacturing units opposing the levy of 28 per cent tax in the proposed GST that would come in to force from July1.

Former minister K.K.S.S.R. Ramachandran (DMK) raised the issue in the Assembly, saying that the entire Virudhunagar district will be affected, as the proposed GST will cripple the entire Sivakasi cracker industry. About 10 lakh employees are dependent on the cracker and matchbox industry.

State Minister Rajendra Balaji also raised the issue. Women and youngsters will lose their jobs if the industry is affected and the stakeholders of the cracker industry have announced a strike from June 30, he said demanding action from the state.

Replying to the query, finance minister D. Jayakumar said the issue has already been taken up with the union finance minister Arun Jaitley, who has assured to review it. "Only the GST Council can levy or make changes in the tax, but on behalf of our state, the issuer will be represented as it would affect close to 10 lakh employees in the cracker industry," the minister added.

Later, speaking on the sidelines of GST awareness campaign in Chennai organised by the Tamil Nadu Government, Mr Jayakumar said there would be no problems in rolling out GST from July 1. He also said awareness campaign will be held in every district headquarters to educate people and traders about the GST. The Minister also said several demands made by the Tamil Nadu Government had been accepted by the centre on several products.