High GST rate pours water on Diwali cracker sales

THRISSUR: The sales of fireworks came down nearly by half during this Diwali due to several factors, including new GST rates and awareness among the public over air and sound pollution. Compared to the sales during Vishu, the business during Diwali is less in Kerala. But the usual Diwali business did not happen, said traders. The GST rate of 28 per cent tax compared to the 14.5 per cent of VAT last year had badly affected the sales, they said. "The customers are now more selective in buying the commodity. They often ask for items with less sound and smoke," Mr V. Unnikrishnan, treasurer of state Firework Dealers Association said.
He has a licence to store fireworks of 1500 kg in Chalakudy. This time, the sales dropped by 40 to 50 percent at his outlet.

"PESO is yet to put in place stringent rules on storage and safety. For Vishu, we sell items with less sound and smoke as demanded by the public," he said. If the same trend continued, the sales during Vishu would also be less. Mr Koduveli Vijayakumar Menon, a firework enthusiast who is associated with conducting fireworks in Thrissur for the past 24 years, said that the scenario was changing for the good.

"The use of potassium nitrate is fully banned. The Petroleum and Explosives Safety Organisation (PESO) has issued stringent guidelines for production units of fireworks at Sivakasi in Tamil Nadu, which is the production hub in South India. They have also put an end to the practice of manufacturing fireworks without any limit by getting a 15 kg gunpowder licence from district administration," he noted.