GST council decided to lower the GST slab on plywood from 28 to 18 % resulting the brands passing on the tax gain to consumers. For the end consumer now the plywood has become cheaper because the retailers are now charging sales Price + 18 % instead of Price + 28%.
The branded segment like Green Ply and Century were quick to pass on the tax reduction and revised their list prices for consumers within a couple of days. The other brands and mid
segment players too did the same that led to a reduction in prices of plywood and panel products after 15th November.
The reduction in GST slabs brought smile on the face of plywood manufacturers, traders and dealers, who were in fear that other cheaper substitutes will take over in long run despite of plywood being an irreplaceable panel like wood. The retailers are yet to witness a surge in demand for wood panel products but sentiments among stockiest have become better.
Since sales are yet to pick up the impact of 18% is yet to be felt among the markets but cheaper plywood is certainly going to help consumers to spend more on furniture and its
raw materials. Although the payment collection is dull but the customers are returning slowly resulting the slight improvement in market is reported by The Ply Reporter correspondents from Mumbai, Bangalore, Hyderabad and Eastern India.
The manufacturers believe that lower tax on wood panels will help mid and small producers also and motivates them to shift to organized working from unorganized segment. GST at 18
% is set to boost the prospects for benefitting the organized players. The experts are seeing this as a fierce competition among economical grade material segment because there is a higher preference for branded products among customers. On the contrary the wish to be organized players and mid-segment brands are observing it as a great opportunity that was never before to get organized
The organized players expect that their revenue will improve from second half of this financial year and are hoping to register an approximate growth of 25 % from next financial year.