Brick kiln owners protest against GST hike; demand revert to old 1%

New Delhi: Thousands of brick kiln owners from across the country on Thursday gathered in the national capital to protest against the government's decision to hike the GST on the building material by 5 percentage points.

From 1 per cent, the Goods and Services Tax (GST) rate has been increased to 6 per cent effective April 1, 2022, Omvir Singh Bhati, general secretary of the All India Brick and Tile Manufacturers Federation (AIBTMF), said. Earlier, GST of 1 per cent was levied on brick manufacturers under the composition scheme.

"Our demand from the government is to roll back the GST to 1 per cent level on bricks. Brick owners from all over the country have gathered to protest against the GST rate hike," he said.

According to Bhati, the industry is facing hard times amid demand and high input cost. The GST on raw material coal is also higher at 12 per cent, as compared to 5 per cent earlier.

There are about 1.5 lakh brick kilns in India, which employ around 3 crore workers. But the labourers are not coming for work as the units are shut down at the moment.

Bricks are one of the main building materials in a construction besides cement, TMT bars, flooring and paint. As per industry estimates, building materials contribute up to 60 per cent of the total construction cost. As per AIBTMF, there was 1 per cent GST on businesses with turnover of up to Rs 1.5 crore and most of the its members have turnover in this range. However, the government has increased the GST to 6 per cent for the entire brick industry.

The industry body has already submitted representations to the ministries of finance, labour and coal seeking redressal of their concerns.