Page 15 - CONSTRUCTION VISION July August 2017 issue

GOVERNMENT IMPOSES STEEL SECTOR TO BE LODHA DEVELOPERS EYES
ANTI-DUMPING DUTY ON UNAFFECTED BY GST 1.5 BN POUNDS FROM
CHINESE CERAMIC ITEMS ROLLOUT LONDON HOUSING
PROJECTS
India has imposed anti-dumping duty on The impact of GST, which is due to be
import of ceramic table and kitchenware implemented with effect from July 1, 2017, India's leading realty firm, Lodha
items from China to protect domestic is largely expected to be neutral on the steel Developers is expecting sales revenue of
industry against goods being sold at below sector. While pre GST, rates on steel are at 1.5 billion pounds (over Rs 12,000 crore) in
normal value. 18.1%, the GST rates have been kept at the next three years from two ongoing
18%. Hence the impact will be largely housing projects in the central parts of this
The Department of Revenue in the finance similar to the effective rate based on city.
ministry yesterday issued a notification prevailing excise duty and VAT rate, both of
imposing the anti-dumping duty of $1.04 per which would be subsumed under the GST The Mumbai-based firm is also looking to
kg on import of ceramic tableware and going forward. Thus, ICRA said it does not acquire more projects here to grow the
kitchenware, excluding knives and toilet expect any material impact of the GST rate business.
items from China. on end users of steel products.
It had forayed into the realty market here in
"The anti-dumping duty imposed shall be This is part of a report by the ratings agency 2013 with the acquisition of the landmark
levied for a period not exceeding six months on impact of GST across various industries MacDonald House at 1 Grosvenor Square
(unless revoked, amended or superseded across the corporate sector. In its Impact in prime Central London from the Canadian
earlier)," it said. Analysis, ICRA has said the implementation government for over GBP 300 million (Rs
of GST would have three major implications 3,100 crore).
It cited investigation by the DGAD which for the corporate sector. It would expand
concluded that ceramic tableware and availability on input tax credit, lead to a The group acquired another site in prime
kitchenware, excluding knives and toilet higher degree of tax compliance with Central London, New Court at 48 Carey
items, are being exported from China to business moving away from unorganized Street for 90 million pounds in 2014.
India "below its normal value, resulting in sector to organized sector, greater
dumping". transparency on tax administration and The company's arm, Lodha UK launched its
reduce bottlenecks and improve efficiencies first project Lincoln Square last year and
The domestic industry, it observed, has in supply chain and logistics. has so far achieved a sales booking of 170
suffered material injury due to dumping. “Closer to the implementation date, million pounds.
The domestic industry, it observed, has however, we would expect some disruptions
suffered material injury due to dumping. and the distribution chain (wholesale and The second project 'No.1 Grosvenor
retail) gets rid of channel inventory to avoid Square', located in the heart of Mayfair, has
The Directorate General of Anti-Dumping any potential inconvenience post transition. been launched this week.
and Allied Duties (DGAD) in its findings The working capital cycle of the industry is
recommended imposition of provisional anti- also expected to expand marginally, post
dumping duty in order to remove the injury GST implementation,” the ICRA note added.
to the domestic industry.

Through a separate notification, the
government also extended by one year till
June 6, 2018 the anti-dumping duty on
imports of 'plain gypsum plaster boards'
from China, Indonesia, Thailand and the
UAE.

The anti-dumping duty on import of plain
gypsum plaster boards was first imposed in
2013 and the DGAD has recommended
extension of the same. The same will now
"remain in force up to and inclusive of the
June 6, 2018", the notification read.

JULY-AUGUST 2017 CONSTRUCTION VISION 13