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, 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 detail
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14%
28%
Auto-parts
14%
28%
Garage Equipment
14%
28%
Hand-made soap (3401)
0%
18%
Hand-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 preparation, 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
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