Enforcement agencies propose GST on human hair, industry opposes
Hyderabad: Despite the human hair export market having a turnover of around Rs 6,000 to Rs 8,000 crore per annum, it has been exempted from GST. Central enforcement agencies such as customs have now proposed GST to be imposed on raw & processed human hair to curb illegal market and smuggling to China via Myanmar. Smugglers are escaping the lens of agencies as there is no GST mechanism to track the sales.
Human hair was exempted during the term of former Union finance minister Arun Jaitley based on the representation made by human hair exporters from West Bengal as lakhs of unskilled and ground-level workers depend on the industry. Now, a customs official said, “GST has to be imposed on both raw and processed human hair. This will help control illegal smuggling.
However, Human Hair Exporters Association and industry have opposed the imposition of GST on raw human hair. Human Hair Exporters Association, in a statement, said “The human hair industry employs lakhs of people who are from arid regions in India and who would otherwise be unemployed. Most of these people are uneducated and will not be able to adhere to the GST norms. Currently, any shipment over Rs 50,000 should be accompanied by a GST invoice. Smuggling is taking place despite this. Imposing GST will further increase smuggling."
