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New rules, GST rate make brick makers to stop production

The Gujarat Brick Manufacturers Federation has resolved to not start production in the new season from October, to protest the new notification as well as the increase in GST rates.

Red brick manufacturers in the state are protesting a new notification of the central government which has put certain restrictions on use of bricks and made brick manufacturing more difficult.

The Gujarat Brick Manufacturers Federation has resolved to not start production in the new season from October, to protest the new notification as well as the increase in GST rates.

Mahendra Prajapati, the joint convenor of The Gujarat Brick Manufacturers Federation’s agitation committee, said, “The central government through a notification in February made some rules to be implemented next year. According to the new rules, all brick kilns must convert to zig-zag technology, which requires large investments that are not possible for all manufacturers.

“The other rule says a brick manufacturing unit should be at least 1km away from other units and at least 800m from residential areas. The government has also directed stopping the use of red bricks for construction larger than 20,000 square metres.

“The GST rate has been raised to 12% from 5%, and in the composition scheme, where lump sum tax is applicable, rates have been increased to 6% from 1%. We demand that the government take back this notification or small brick manufacturers will not survive.”

He said there are 1,200-odd brick kilns in Gujarat with each manufacturing 30 to 40 lakh bricks a year. This sector employs more than 5 lakh people in the state. The federation has written to Prime Minister Narendra Modi and Gujarat chief minister Bhupendra Patel about their issues. The federation said the government wants to promote flyash bricks, which are not as durable as red bricks.

Jagdish Prajapati, vice-president of the federation, said, “It is not possible to continue production with the new rules, so we have decided not to start production in October after the monsoon. Associations of various states are also opposing the new rules.”

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