Paint prices to remain stable under GST: IPA

Centre proposed 28% tax on paints sector with only powder coatings segment kept in 18% tax bracket

Paint prices are expected to remain stable under the goods and services tax (GST) as its impact is neutral.

The GST rate on paints is 28 per cent, which current effective taxes add up to. Excise duty accounts for 12.5 per cent,  with states charging value added tax (VAT) of 12.5-14.5 per cent. Paint companies also pay an additional 1.67 per cent VAT on the excise duty.

The decorative paints segment comprises 70 per cent of theRs 40,300 crore industry and powder coatings account for 3-4 per cent.

“The GST will not change the price at the consumer end although there will be