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GST: Prices of handbags, luggage to rise by 10-15% after 28% GST rate: VIP's Piramal, Retail News, ET Retail

Prices of handbags, luggage to rise by 10-15% after 28% GST rate: VIP "Soft luggage which is 85 percent of the market is essentially a textile operation. These products can also be made very easily by small businesses because there is no technology or heavy machinery involved. So for such a product where the tax rate is so high, it will make the product 10-15% expensive. Because the unorganised sector can make this product very easily and since half of the market is unorganised, the tempation to evade the taxes for the unorganised players at 28 percent is very very high," said Piramal. Last month, the GST Council finalised a four-tier structure for taxation of both goods and services at 5, 12, 18 and 28 per cent. Piramal along with his association, ' Luggage and Handbag Manufacturers Association ', which includes VIP Industries, Samsonite, Safari Industries and Wildcraft among others, met with the government official recently to put their point forward on the excessive tax rate being imposed on their industry. Piramal said they were meeting officials in finance ministry in New Delhi to make their representation in a hope to get the GST rate revised. According to Piramal, they were hoping bags and luggage to come under 18% GST rate as they were already paying taxes in tune of 18%. "What has happened is that most consumer durables goods have been put under 28% GST rate slab.

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