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Surfaces Reporter magazine is doing a great job. Dedication, enthusiasm, and insight of entire team are really inspiring. I wish you many years of great achievements
I think Surfaces is responding well to its USP of being a product centric informative magazine. Maybe it could even discuss the intangible, immeasurable qualities/ values of different materials rather than only their tangible attributes.
Kamlesh Patel & Mukesh Patel | Asian Granito Limited
Ar. Shirish Beri | Shirish Beri & Associates, Kolhapur
I read Surfaces Reporter for updating my knowledge about the latest products & innovations in the industry. Nice presentation.
Surface Reporter magazine’s is one of the most active media we have been hearing from recent past. Content is really useful to the specifiers, builders, manufacturing fraternity and design enthusiast. As a magazine dedicated to exterior-interior products, projects & designs, serves the purpose to B2B, B2S & B2C segments. Big thanks to the team behind this magazine and wish them all the success for the future endeavors!
Aadesh Jayasen | Zen home, Mumbai
Such an endeavour like Surfaces Reporter was strongly needed for our industry. Look forward to reading and analysing your offering.
Ashutosh Shah | MD, Duravit India, Ahmedabad
Rishi Kapoor | The Casting Couch, Mumbai
SURFACES is the only magazine where you just do not get the information about materials available in the market. Here as a reader, we also get to see how these materials are explored in many ways by the designers. Being a designer it is helpful for us to widen our vision in the matter of material exploration with technology. Plus the magazine also helps in bridging the gap between suppliers and designers. Viral Patel | Interior Designer
Much needed magazine for our industry. Thank you! Praneet Jain | Contractors, Parin Engg Solutions, New Delhi
Sparsh Design Studio, Rajkot
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editorial
Is GST Favorable for Building Materials, Architecture & Design Services?
W
elcome to the GST era! With the midnight gong of bell, Goods & Service Tax, greatest tax reform in India since independence, has been set in motion early tonight. The objective is to unify the nation with one tax, which is expected to connect the $2 trillion economy with more than 1.3 billion people into a common market. Any reform has to go through implementation challenges and teething troubles. For a vast heterogeneous country like India, it is quite obvious for economists to have mixed opinion. To count, a few of the major challenges are settlement of the small businesses in the informal sectors with the new tax regime, finding ways to stop evasion of taxes by opening of multiple firms for below Rs.20 Lakh turnover, separate registration in states where businesses are to operate other than own state, any other implications, and many more. As someone quoted, “More than 50% of Indian businesses are unaware of the changes that GST will bring in, and how to adapt.� This is truer for micro & small businesses operating in the unorganized segment. There is fear, uncertainty, and lack of clarity, which need proper addressing, awareness programs, and
Surfaces Reporter
understanding of their pain points, in order to minimize the adverse effects. GST is expected to nail the firms that survive by flouting regulations and evading taxes, by bringing them under strict tax net. While this is good, we cannot stop looking at the impact on businesses that contribute 50% to GDP and 80% employment opportunities. Ensuring livelihood for the vast percentage of employed people in small & micro sector is a major concern while these companies undergo transformation.
Pre-GST, there was provision for centralized registration for Service tax which enabled service provider to render services from any place in India after registration but Post GST, centralized registration will not be available as the dealer or the service provider needs to get registered with that particular state Government where he has the provision for registering business site office as well from where he is intended to provide services, an expert commented.
GST for Building Materials, Work Contracts, Interior & Architecture Services
For Work contracts, earlier decided slab of
As per reports, GST on Wallpaper is increased from 18.5 to 28%, with the same slab on Leather which had earlier enjoyed lower taxes. On GST implementation, the biggest beneficiaries among the Building material companies are the sectors that have larger share of unorganized segment. The benefits would be in the form of subsumed taxes for multiple levies, reduction in logistics costs, smoother paperless compliances etc. Most of the building materials & interior products are kept in 28% slab which is almost a neutral rate from the average of 26-29% earlier corresponding to multiple taxes, as in Cement, Tiles, Plywood, Furniture, Sanitary ware, Paints, Putty etc (not to forget provision of input credit). Positive impact is expected on Carpets and LED lights/ lamps due to the reduced GST of 12% instead of 25% & 17.5% respectively (Bamboo furniture and Pre- cast concrete attracts lower GST of 18%). Goods & Service Tax is expected to benefit the organized sectors in Building products by providing a level playing field, which would bring in consolidation for various industries. By the way, cement, paints, tiles & sanitary ware industries are also set to benefit from various government initiatives like ‘Swachh Bharat Abhiyaan’, ‘Housing for All by 2022’ & ‘Smart City Mission’ as they would drive demand for Building products.
Services pertaining to Architecture & Design on the other hand, would attract a GST of 18%
instead of earlier Service Tax of 15%. The provision of input tax credit mechanism is said to be the major game changer in the GST regime which would effectively lower the real incidence of taxation than the marked taxation rate. Luxury services of any kind, however, would attract the highest rate of 28 per cent.
12% was changed by the GST council recently. It says, Construction of complex, building, civil structure, including a complex or building intended for sale to a buyer, wholly or partly, will attract a GST rate of 18%. GST, however, will not be imposed on fully constructed properties, where completion certificate as been issued by competent authority.
Major concern post GST is to see how the informal sectors cope up with the new tax regime. We can see a widening gap with the organized players, which if takes a bad turn may not be good for the economy. They were already beaten by demonetization. Many MSME associations have expressed lack of clarity regarding reverse GST, additional IGST etc. There are confusions, chaos in different sectors depending on the level of organization and type of sector. However, overall sentiment is positive within India and globally for India. History says, adoption of GST might lead to temporary disruption in the economy as businesses take their time to adjust within the current tax frames. Proper implementation, adaptation and acceptance of GST will tell us where it leads.
Vertica Dvivedi | vertica@surfaces.in https://in.linkedin.com/in/verticad https://www.facebook.com/verticad
CONTENT in Visual-IIIIII Visual II
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Chief Principal Designer, Image N Shape, Surat
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