Wooden Flooring and Doors product to be levied under 28 % GST as per government proposal. This scenario will lead to price increase of this product category. Off late the acceptanceof wooden and laminated flooring has been wide and speedy. The growth in wood flooring in India has come quickly because of economy, quick install and aesthetics and hence retail sales have grown equally with project segment. Laminate flooring is particularly popular pan Indiaand is used in every kind of spaces like hotels, restaurants, sports facilities, offices etc.
The wide acceptance, need and opportunity is motivating number of Indian Entrepreneurs to start laminate flooring production in India but the proposed GST of 28 % will bring its costing up lead this product dearer marginally for consumers varies brand wise. Although, this category will not be much affected because the most of players in wooden and laminated flooring are from formal sector, which tax rates are not much affected.
Doors sector is certainly going to be hit and the prices are going to increase of each wooden door or flush door. The slab of 28 % GST rate will impact majority of the door manufacturers because it was prominently driven by SSI units spread across the country who are currently running under excise exemption limit. Doors have been decent growing product category in India and largely produced in North India. With receding demand of Block Boards, majority of blockboard makers shifted to flush doors manufacturing leading to 60 % market share in total doors produce in country. Because this sector is of customized size hence it is under limitation of production constraints that eventually become costlier at GST slab of 28%.