Last week the GST panel decided to cut off the 12% GST on sanitary pads after protests from many women’s rights organisations. Post this decision, the leading pad manufactures in India are disappointed and they feel that customers won’t get the benefit they are seeking for.
The Feminine and Infant Hygiene Association (FIHA) has said that this decision denies input tax credit to companies manufacturing in India, and to compensate the loss, the companies will not be able to pass any significant benefit to the consumers.
“There is also a concern that this decision offers an unfair competitive advantage to importers which is contrary to the spirit of a level playing field in the domestic market, among a host of other challenges”, read a statement from the lobby group which has companies like Johnson and Johnson, P&G, Kimberley Clark.
India’s leading large and medium scale sanitary pad makers have also warned that after the removal of GST, it will be uneconomical and difficult to continue supply to government contracts at existing rates.
FIHA wants their members should be allowed to avail the input tax credit because, with this, it would be able to pass on the benefit received from the rate cut to customers.
“On behalf of the industry, FIHA is approaching the government and making a representation to the concerned authorities to come up with a solution that should allow the input tax credit so that the category becomes more affordable to the consumers”, the lobby group said in a statement.
FIHA is an association of companies who manufacture baby and clinical diapers and sanitary napkins. It has been actively involved in raising the awareness of feminine and infant hygiene at different government levels and provide these products at affordable prices.
Other industry experts also feel that this decision is unlikely to achieve the result for which it was made. It will be interesting to see how the government reacts to the concerns of these companies.
