GST at 28%: Buyers to feel the heat

The dealers said their businesses had been hit because of the Punjab and Haryana High Court’s orders of allowing only 20 percent of the previous cracker licence holders and above that GST would further impact their business. (Representational Image)

THOSE BUYING firecrackers will have to shell out more this year as Goods and Services tax (GST) is being levied on the crackers and that too the highest slab rate- 28 percent on the MRP. This has pushed up the cost of fireworks.

Anyone who purchases crackers worth Rs 5,000 will have to shell out an extra Rs 1,500 as GST. Similarly, on purchase of crackers worth Rs 10,000, one will have to shell out Rs 2,800 more. A cracker seller said a normal pack of anar, which costs Rs 300 would be priced at Rs 384 now. Cracker shots, which come for Rs 4000, will now be priced at around Rs 5120.

Excise and Taxation officer (ETO) Sanjeev Madan told Chandigarh Newsline that these traders had been directed to issue bills and impose 28 percent GST on the crackers. Sources said because the number of stalls this year were limited, cracker sellers who have been granted licences were already charging exorbitant rates.

The dealers said their businesses had been hit because of the Punjab and Haryana High Court’s orders of allowing only 20 percent of the previous cracker licence holders and above that GST would further impact their business. Fireracker sellers have been asked to deposit advance with the Excise and Taxation department in lieu of GST. A person who will purchase crackers worth Rs 5000 will have to shell out further around Rs 1500 as GST on it. Similarly, on the purchase of crackers of Rs 10,000, one will have to shell out Rs 2800 more.