Government of India has no plans to waive GST on Khadi products priced under one thousand rupees or reduce GST rates for Khadi products priced above one thousand rupees, as no such recommendation has been made by the GST Council. However, based on the recommendations from the GST Council’s 21st meeting in September 2017, Khadi fabrics sold through outlets of the Khadi and Village Industries Commission (KVIC), which fall under chapters 50 to 55, are fully exempt from GST. Additionally, the supply of Khadi yarn under chapter 52 is also exempt from GST. These measures aim to support the promotion and preservation of Khadi, a significant part of India’s heritage.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.3235
TO BE ANSWERED ON MONDAY, DECEMBER 16, 2024
GST ON KHADI PRODUCTS
3235. SHRI M K RAGHAVAN:
Will the Minister of FINANCE वित्त मंत्री be pleased to state:
a. whether the Government has any plans to waive-off GST on Khadi products priced under one thousand rupees, as Khadi is a part of our country’s heritage;
b. if so, the details thereof;
c. whether the Government has any plans to reduce the GST rate for the Khadi products priced above one thousand rupees; and
d. if so, the details thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
a. GST rates are prescribed on the recommendation of GST Council, which is a constitutional body comprising of representatives of States/UTs and Centre. There is no such recommendation of the GST Council.
b. Does not arise in view of reply to part (a) above.
(c) & (d): There is no such recommendation of the GST Council. However, based on the recommendations of GST Council in its 21st meeting held on 9th September 2017, Khadi fabrics, falling under chapters 50 to 55, sold from outlets of Khadi and Village Industries Commission (KVIC) have been fully exempted from GST. In addition, supply of Khadi yarn falling under chapter 52 is also fully exempt from GST.
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