New Delhi, July 6 (KNN) Under the newly implemented Goods and Services Tax (GST) the fireworks industry is placed under the tax slab of 28 per cent, against which the industry has been protesting. Responding to the agitation, the Tamil Nadu government has assured to take up the proposal of reducing the tax rate in the next GST council meeting scheduled for August.

Major associations of the fire cracker industry were sitting on an indefinite hunger strike since day over implementation of the higher tax rate.

Following this, the Tamil Nadu government held talks with the representatives from associations including TANFAMA, The Indian Fireworks Manufacturers’ Association and Tamilan Fireworks Manufacturers’ Association.

During the meeting the industry explained the negative impact that the GST might have on their sector. The firework industry is labour intensive.

Responding to the appeal, the state government officials informed that the changes can’t be made in the rates till the GST council meets in August. It further said that the government is aware of the issues surrounding the industry due to the high tax rate under some items under GST. (KNN/ DA)