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GST on Khadi products

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..... GST on Khadi products
GST
Dated:- 10-8-2017

Ministry of Micro, Small and Medium Enterprises (MSME) welcomes the introduction of GST. The entire Khadi & Village Industries (KVI) sector has been enjoying the benefit of tax exemption even under the pre-independence era. With the exemption to the SSI sector being drastically reduced from the existing ₹ 150 lakh to ₹ 20 lakh, .....

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..... the exemption cover enjoyed by many of the Khadi Institutions (KIs) has been removed. KIs are now mandated to obtain registration under GST and also pay GST on various Khadi products which is 5%. The products of the Village Industries sector were either taxed @ 0-14.30% before-GST and post-GST the same products attracts tax @ 12-28%, and the details of the same is given below: Details of produc .....

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..... ts of the Village Industries sector under pre-GST & post-GST Items Before (GST) After (GST) Dona plate 5% 18% PVC Scrap 5% 18% Ayurvedic Medicine 0% 12% Sanitary Hardware & Paint 14% 28% Marble & Granite 5-14% 28% Electronic Weighing Scale 5.5% 28% Lock 5% 18% Mentha 5% 18% Solar Plate 0% 18% Textile sector 0 to 5% 18% Gobar Gas/Bio Fuel Generator 0% .....

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..... 18% Agriculture Diesel Engine (upto 12 B.H.P.) 5% 28% Plywood 14.30% 28% Sewing Machine parts 5% 12% Detergents 5% 28% Glassware boll (Kancha) 0% 18% Tractor attachments 14% 28% Weighing machines 14% 28% Wet grinders 14% 28% Compressors 14% 28% Packing Machines 14% 28% Auto-parts 14% 28% Garage Equipment 14% 28% Hand-made soap (3401) 0% 18% Ha .....

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..... nd-made paper (4802) 0-4% 12% Herbal Shampoo (3305) 5-12% 28% Leather Products (suit-case/brief-case/other articles) 5-12% 28% Agricultural, Horticultural or Forestry Machinery for Soil preparation 5% 12% Harvesting or threshing machinery 0% 12% All food mixes, sharbat, ready to eat packaged food 5% 18% Hand operated mechanical appliances, weighing 10 kg or less, used in the pr .....

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..... eparation, conditioning or serving of food or drink 5% 18% At present only Khadi yarn produced in Khadi sector is exempted, while other Khadi products attracts 5% GST. Ministry of MSME has approached Ministry of Finance to consider the sector for exemption from GST or to ensure a seamless flow of input tax credit in order for Khadi Institutions to claim input tax credit. This Press Release is .....

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..... based on information given by the Minister of State for MSME Shri Giriraj Singh in a written reply to a question in Rajya Sabha on 10.08.2017 (Wednesday).
News - Press release - PIB .....

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