India: Kerala’s marble, granite dealers request government to stop purchase from other states

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The All Kerala Marble and Granite Dealers Association (AKMGDA) submitted a slew of requests to the state government so that an “immeasurable loss” to the state’s revenue – which goes towards Integrated Goods and Services Tax (IGST) – can be prevented while putting Kerala dealers in an advantageous position. Among the requests is a directive to private contractors to purchase construction materials from dealers within the state.

In a memorandum submitted to Industries Minister P Rajeev at the 12th annual conference of the association held in Kochi, its president Mustafa P K said there is no control now on the purchase of construction materials in terms of the source state.

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“For example, for building work, a contractor is free to purchase all items from outside the state. This causes immeasurable loss to the state as the state’s revenue, in the form of GST component, is paid as IGST,” AKMGDA pointed out in the memorandum.

However, if the items are purchased from dealers in Kerala, the state will straight away get its share in the form of SGST, the association said. “At the same time, it gives Kerala’s dealers an advantage as our sales and turnover will increase,” it said.

That will boost job opportunities, besides triggering a ripple effect on the economy through work for drivers and those in ancillary services. The only counter-argument that may be raised is the probable increase in the cost of projects. “This notional loss is also more than made up by the SGST tax enjoyed by the government,” the memorandum said.

AKMGDA later elected its new office-bearers. While Mustafa P K is the new president, Vijayan T is the secretary. Other office-bearers are Navas P K (treasurer), Abdul Salam (vice-president), Abdul Salam and Vijayan G (vice-presidents), and Ismail and U K Ashraf (joint secretaries).