High Pressure Laminates (HPL) is proposed in 18% GST that means the HPL prices will certainly go down after July 1st as the industry has to pass the tax benefit to consumers. In existing rate of Excise+Vat+CST+Cess etc. the laminate industry was attracting around 28 percent or more on taxes where as now it will have a lesser slab on its range.
All the laminate products have come under 18 % in proposed GST slab that will certainly lead to a reduction by 8 to 10 % on prices post GST. As per industry reports, HPL sector are comfortable and satisfied with the proposed GST rate and hope that it will help the industry to get more organized working in future.
India has now more than 200 HPL producing establishments that includes every kind of laminates. The top brands like Greenlam, Merino, Stylam, Century with strong market foundation have expanded their capacities during last 3 to 4 years, sighting rise in domestic and international demand. The massive surge in HPL manufacturing capacity has also happened in the country and 18 percent tax slab has boosted the morale of industry as well as stockiest across the country and regions.
The sharp growth in 0.8 mm and liner 0.72 category during last 3-4 years has been majorly taken by semi organized and unorganized segment. The GST could be a benefit to all the segment specially organized segment as they will be able to reduce the price and pass on to consumers once GST is implemented. However, plywood is the major basis of HPL sales growth and if plywood demand are subdued it affects the HPL growth as well. There are many points where clarity is awaited though GST is a booster for Decorative Laminate sector.