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GST rate not in tune with West Bengal musical instrument industry; MSMEs upset

Updated: Aug 02, 2017 07:26:43am
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GST rate not in tune with West Bengal musical instrument industry; MSMEs upset

Kolkata, Aug 2 (KNN) The manufacturers and dealers of musical instruments in West Bengal seems upset over 28 per cent GST on musical instruments  making their music not so melodious.

Kolkata is considered to be the hub of the industry.

In a letter to West Bengal Chief Minister Mamata Banerjee, West Bengal Musical Instruments Dealers and Manufacturers Association (WBMIDMA), raised their concerns with the state government.

According to a media report, Ajit Kumar Mondal, Secretary, WBMIDMA, said, "In just one month, the market has crashed. In one month, if a shop used to sell instruments worth Rs 1 lakh, that has come down to Rs 20,000."

Earlier, some items were classified as handmade instruments and were exempt from tax.

"These included tabla and harmoniums among others. Rest were under the 14.5 percent VAT structure of state government. Now it has become 28 percent after GST," said Mondal.

The manufacturers are also confused with the 'indigenous handmade musical instruments' slab in the current tax regime. Items in this category would be exempt from GST.

"We do not know exactly what instruments can be classified in the 'indigenous handmade instruments' category. We have sought clarification about the kind of musical instruments under this slab by writing to the sales tax office," he said.

Mondal said while in Kolkata alone, over a lakh persons are directly or indirectly involved in the business, at least five times more are linked to it in the entire state.

"Our key clientele include music schools, schools and other educational establishments as well as enthusiasts. Since traditional music is a big part of our cultural heritage, the business was doing well up until GST came. We have also written to the Union Finance Ministry," Mondal said.

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