South India match manufacturers association disappointed as GST rate remains unchanged

According to J Devadoss, secretary, South India Match Manufacturers Association, Kovilpatti, “The match industry, which faces an 18 per cent GST burden, is yet to recover from the crisis. With all eyes on the council meeting, expectations of genuine tax payers rested on what ultimately turned to be a fiasco.” He added that the situation has put manufacturers in a spot of bother.

The manufacturers have been sending representations to the GST council during all previous meetings, emphasising the need for lowering the 18 per cent presently levied to 12 per cent. 

But, Devadoss said, the council was seldom bothered to consider this legitimate concern. “The 95-year old industry, which provides employment to scores of unskilled persons, was destroyed after the GST roll out. Match box is the only product available in market for Re 1 both before and after the introduction of GST,” he told DT Next on Monday.

Claiming that safety matches is the only product which its producers pass on benefits of input tax credit to consumers, Devadoss said, “Even after the introduction of electronic-way bill under the GST, which is aimed to ensure cargo transparency between consignor, consignee and government, the match industry has not benefited.” 

In the wake of the e-way bill system, there is no room for physical check posts. Absence of such check posts would result in abetting illegal activities, he said.

D Krishnamurthy, a manufacturer cum exporter based in Kovilpatti, said the much-awaited GST council meeting ended with no tangible progress for the manufacturers, who eagerly waited for the lowering of GST. 

“However, the formation of committee as announced by the council to discuss the issue gives us a little hope. The committee should include officials from Tamil Nadu,” he said.

Krishnamurthy noted that the export trade of this consumer product from Kovilpatti has not been great. This unhealthy situation arose after several merchant exporters, whom he termed as ‘middlemen’ in Mumbai joined the deal. “The export trade suffered yet another blow following the currency devaluation. Africa was the largest importer of matches from Kovilpatti but export orders have slumped of late,” he added.