New Delhi: Khadi products may after all be exempted from the recently implemented goods and service tax (GST), Kalraj Mishra, Union minister for micro, small and medium enterprises (MSME) said on Friday. In a statement released by the Khadi and Village Industries Commission (KVIC) on Friday, Mishra said the GST panel has already started analyzing the “pros and cons of GST exemption, to benefit the workers, weavers and spinners associated with Khadi”. While 5% GST has been imposed on Khadi cloth currently, 12% GST has been imposed on the sale and purchase of readymade Khadi products priced above Rs1,000. Khadi yarn, Gandhi topi and India’s national flag, however, have been kept out of the purview of GST. The tax on Khadi, which had been free from any kind of taxation since 1947, has hurt Khadi traders across the country.

Source: Mint July 14, 2017 19:07 UTC