Like all other industries effected by GST same as kites industry. Some have positive effects and some have negative effects. Kites industry also have negative impact after GST as explained below:
The annual turn over in this industry 40 crore rupees until last year. As per the news concerns now the kites industry business declines upto 50% of this year because of GST. Maximum number of merchants not able to continue because of GST regime.Some reasons to explain this are given below:
The annual turn over in this industry 40 crore rupees until last year. As per the news concerns now the kites industry business declines upto 50% of this year because of GST. Maximum number of merchants not able to continue because of GST regime.Some reasons to explain this are given below:
- This is not an organised sector in India so the demand decreases because of GST.
- GST has applied a separate tax 5% on kites industry, as there is already a tax of 5% on strings and 12% on paper. This increased in total manufacturing cost means as an average 2 rupees increase in cost of single kite.
- NGT(National Green Tribunal) continuously protesting against the kites string, so the workers are not longer interested in the job.
- The kite industry also suffer loss due to the demonetization in India.
- Some reasons is like that maximum of jaipur manufacturers buy row material for kites manufacturing from other states, now as per GST it is impossible to transport from one state to other without GST firm number so it is a total loss.
- Also goes for other states also, the supplier not able to supply with in the state to those does not have GST registration.
- Some common problems are low demand and increased cost in this industry.
- Now because of the GST the price goes up again and demand is still at its low.
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