Morbi's ceramics industry, which accounts for 80% of India's tile production, has urged the Centre to reduce GST on tiles and sanitaryware from 18% to 5% as part of the GST revision announced. Trade associations across the country have backed the demand, writing to the Union finance minister.
In its representation, the Morbi Ceramic Manufacturers Association (MCMA) argued that the 18% slab wrongly classifies tiles as a luxury product. "For poor and middle-income families, tiles are not a luxury but a necessity for affordable housing. Compared to marble and granite, tiles are a cost-effective option," the association stated.
MCMA president Haresh Bopaliya said lowering GST would help MSMEs — nearly 90% of Morbi's tile units operate on thin margins — and boost allied sectors such as housing, construction, cement, sanitaryware, logistics and exports.
The govt is currently working on GST rationalization, which is expected to merge multiple slabs into two.
Supporting Morbi's pitch, trade bodies including the South Tamil Nadu Sanitaryware and Tiles Traders Association, Indore Tiles and Sanitary Traders Association, Laghu Udyog Bharti and the Ceramic Traders Association of Karnataka have written to the Centre.
The Morbi cluster has over 800 tile units, mostly MSMEs, with an annual turnover of Rs 50,000 crore and exports worth Rs 18,000 crore to over 150 countries. The industry provides direct and indirect employment to nearly 10 lakh people.
