PVC foam Boards are proposed under 18% GST slab which will be advantageous for this growing product category in India market. PVC foam board is in nascent stage in India market and very new product from furniture making. This product category sector is promoting this product as an alternate of other panel such as plywood, MDF and Particle, which prices will go up because of high tax slab of 28 %. Hence PVC foam board users may prefer to use this product compare to other products. There is no visible reason that prices of PVC boards will be impacted because the units will have to add GST as an addition to past prices. It must be noted that majority of PVC boards makers are SSI units and were running exempted of excise duty so far.
In general the prices of PVC Foam board will remain unaffected, even for SSI units, because the producers buy almost all raw materials after paying taxes, which are almost in same GST slab so they can take MODVAT It is noted that PVC foam board sector is very young inn India market and has been started just 5 years back. With 100 operational units and 900 cr annual market size, this trade is led by Alstone, Amulya, Black Cobra,Alutuff and others. Recently, Reliance Industry has also entered into this sector and offering ready compounds to PVC sector. Reliance has recently announced tie up with German company Resysta, for making compound in India. Seeing the opportunity in this product segment India’s leading plywood brands Century ply and Greenply also have launched PVC boards.
According to estimates done by the ply reporter PVC/WPC board market is expected to reach to Rs. 2000 crore by 2020.