News Leak Centre

GST And Cattle Ban Effect: Cricket Balls And Leather Items To Get Costlier

The government of India had introduced the GST with a great show by calling in the special Parliament late at night. GST which has been under the firing line for hard to understand the new tax reform.

In another decision of the Union Government of imposing 5% Goods and Service Tax (GST) on raw hides is adding to the worries of the leather and sports industry.

The leather industry which is in constraints of steep hike of 15 to 20% in the cost of raw material after the government’s decision of banning slaughterhouses in Uttar Pradesh followed by the sale of cows and buffaloes for slaughter across the country.

After imposing GST on the raw material in the leather industry and other goods used for manufacturing cricket balls, the price of the cricket balls is expected to double in the next two months, traders claimed.

“Currently, traders have leather stock for one month. So, prices of cricket balls may be stable or may only witness a marginal hike of 5% to 10% in prices. But, if the cattle ban remains intact for over one month, the cost of cricket balls will see a hike of over 40%,” said Ravinder Dhir, president, Sports Forum,

Leather Prices:

Further, he added that volleyballs, cricket balls and baseballs are all made of leather, for which the leather is imported mostly from Western UP, but due to slaughterhouses there have already been shut down. “A sheet of leather which earlier cost us Rs 1300 in March is now available for over Rs 1,700,” Dhir said

Rajinder Prasad, a leading sports trader here, said that superior quality cricket ball price has gone up to Rs 600 now against Rs 350 to Rs 400 six months ago.

There were at least 60 tanneries (factories) in the district. Five years ago, the figure rose to more than 100.

Jobs Are At Stake:

“Generally, traders prefer to buy the skin from slaughterhouses as it produces high-quality leather products as compared to the skin of dead animals for a cricket ball and sports goods,” said Col Jagjit Singh Paul, president of the Punjab Leather Federation

He further added that jobs of over 10,000 employees in the leather industry here are at stake after the ban of the slaughter of animals and GST on raw hides.

“There was no tax on the purchase of raw material within the state and only 2% Central Sales Tax (CST) was imposed on the imported material. “But after implementation of the GST, the government has imposed 5% tax on the purchase of material within the state and 5% IGST on the import of raw material,” Col Jagjit said.

Similarly, the government is charging 12% GST on the import of finished leather against the current 6.05% VAT charged by the state government, which would increase the cost of all leather goods.

Meanwhile, leather traders are on strike for the past one week against the government’s decision of 5% GST on raw material.

CM Yogi Adityanath in Action: Taking UP on The Course Of Development

Uttar Pradesh, even though being the most populated state of India, is one of the least developed states in the country. Crime rate, women security, corruption is few out of the many problems in UP.  

 

The new Chief Minister, Yogi Adityanath, has to overcome all these problems and expected not repeat same actions as his predecessors. He is 5 times Member of Parliament and has been working a lot in his constituency, Gorakhpur. After becoming Chief Minister, he has taken a lot of steps to fulfil the promise of ‘Vikas’ that BJP had made. Alok Rai, senior journalist, based in Lucknow gave us a clear viewpoint on this. Following are the few steps that until now he had taken that no CM earlier had:

 

·         After becoming the CM, the first order of Yogi Adityanath was for all the ministers to declare their movable and immovable assets within 15 days. 

 

·         BJP in its manifesto had declared during elections that they will ban all the illegal slaughter houses in the state. They have supported the beef ban. Yogi has also implemented this and ordered for the closure of all the illegal slaughter houses operating in the state.

 

·         The Chief Minister has issued orders that no minister in the state government will be allowed to use the red beacons atop vehicles. This step is to prevent the VIP culture in the state.

 

·         Hemvanti Nandan Bahuguna, former CM of UP in 1973, was the last Chief Minister who actually visited the entire CM office and raised the issue of cleanliness in government offices. After that, no CM has ever made an effort for such visit. But Yogi Adityanath actually took an initiative and took a round of the entire office. He also ordered for its cleanliness.

   

·         CM has also ordered the government officers to come to the office at 9:30 AM and stay till 6:00 PM. The officers are also ordered to give a presentation to their respective ministers every day about their work. 

 

·         “Anti-Romeo squad” an initiative to catch the eve teasers in UP is launched by UP police for women protection. There has been a lot of criticism of this action as the allegations were raised that the police will actually harass innocent boys. Even though CM has clarified that this is just for women protection and no harassment of any innocent will take place, otherwise, strict action against the concerned officer will be taken.

 

·         Yogi Adityanath made a surprise visit to the Hajrat Ganj Police station in Lucknow. He moved from one wing to the other. All the policemen looked nervous as it is rare for a chief minister to visit a local police station. Yogi Adityanath had a discussion with senior police officers and tried to understand how the department works. Yogi Adityanath said that it would not be the last inspection and more inspections in all the government departments would be carried out. 

 

It’s been only a few days since the appointment of the new CM and efforts are under way to bring the state on track. It’s too early to speculate the possibilities of whether the steps taken are fruitful for the development. But at present, these moves are worth appreciating. 

By – Parul Kulshrestha