'Tala Nagri' lock-makers gasping after GST roll out

Last year, the industry was struggling to catch the breath after the demonestisation move by the centre in November 2016.

With 18 per cent Goods and Services Tax (GST) on key and lock, the local manufacturing industry is on the verge of shutting down as buyers unwilling to purchase the products.

Aligarh, aslo known as 'Tala Nagri', accounts for almost 75 per cent of the key and lock production in the country.

Lock industry workers in Aligarh, Uttra Pradesh said that buyers unwilling to purchase products at 18 per cent as opposed to 2 per cent prior to the GST regime, reports ANI.

Aligarh:Lock Industry workers say Industry on verge of shut down, buyers unwilling to purchase products at 18% as opposed to 2% earlier #GST pic.twitter.com/FTHDmaSHWj

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Last year, the industry was struggling to catch the breath after the demonestisation move by the centre in November 2016.

Consequently, 90 per cent small and cottage scale units, including unregistered ones, were either closed down or were on the brink of closure, according to Indian Express which quoted an SP leader Zafar Alam.

Now, the industry is on the verge of closure with the rolling out of GST

However, Godrej- a brand in the lock manufacturing sector, have reduced the price of the locks to pass on the benefit to the consumers by suitably revising its wholesale and retail prices across the country.

"GST is a landmark move towards one nation, one tax initiative. The locks category will now attract 18 per cent GST. This is a positively beneficial move for the industry. We expect demand for branded locks to increase in the near future," said Godrej Locking Solutions and Systems VP and business head Shyam Motwani.

Around 60 % of the country's lock industry has unorganized players. The total lock market is estimated at around Rs 4800 crore, Motwani told PTI.

(With agency inputs)