Kite Makers in Gujarat announce to stop production to protest 5% GST

Ahmedabad: Amid the widespread opposition of Goods and Services Tax (GST) regime by various sectors days before its implementation from July 1, the kite makers in Gujarat, one of the prominent states in kite business in India with an estimated over 40% share, today announced to stop production of kites demanding complete removal of 5% GST on it.

Secretary of Gujarat Kite Manufacturers and Traders Association, the umbrella outfit of kite traders in the state, Mukesh M Chhatriwala today said that the kite business would be adversely hit if GST was not removed from its production.

‘In Gujarat, so far there was no tax on kite making as the then Narendra Modi government in the state in 2005 very generously did not put any VAT on it after a representation from us. But apart from the 12% tax on the paper used for making kites, a separate 5% tax on kite itself has also been proposed in GST. We don’t have any problem with 12% tax on paper and are ready to pay it but the 5% tax on kite was not acceptable as it would ruin the lives of thousands of poor families associated with the business which was centered in Ahmedabad, Khambhat, Baroda, Surat and Nadiad in the state,’ he said.

Chhatriwala said that they have written letters in this regard to Prime Minister and Finance Minister but so far have not got any result.

He said that all over the country the total kite sale annually was estimated to be around 100 crore of which over 40 crores (around 30 crore on paper and other unorganized) was in Gujarat.

‘The kite production business in Gujarat and elsewhere in India including UP, Rajasthan and Delhi are mostly a cottage industry kind of thing. Families expert in it take orders from us and supply it for sale. The maximum sale ie around 80 % is seen during days of Uttarayan every year,’ he said.

Chatriwala said that they are likely to hold a protest sit-in near Sardar baug in Ahmedabad tomorrow on the issue if the police permission for the same was granted.
‘The sit in protest program might change if the permission is not granted owing to the trip of Prime Minister tomorrow,’ he said.

‘In any case we would completely stop production of kites from July one if it is not put out of the ambit of the GST,’ he said.

Notably, textile traders in Gujarat, a hub of the business, are observing a 3 day bandh as part of nationwide call against GST, Kirana traders, Furniture merchants and many others area also protesting the new tax regime.