GST impact: Rs 1,100-crore UP plywood industry on the verge of closure

The plywood industry attracts the highest GST slab of 28%; in UP, it also attracts a 2.5% mandi fee

Even as small and medium enterprises (SMEs) and traders continue to face transitory challenges and irritants after the rollout of the goods and services tax (GST) regime from July 1, the plywood industry in Uttar Pradesh (UP) is on the verge of a collapse.

The UP plywood industry, estimated to be worth over Rs 1,100 crore, accounts for roughly 10 per cent of the country’s total plywood space. In the state, the plywood industry employs almost half a million people.

The plywood industry attracts the highest GST slab of 28 per cent, while wood, adhesive and sunmica attract an 18 per