By
Fibre2Fashion
Published
Jul 12, 2023
The Indian government is set to reduce the GST rates on imitation zari thread, which is extensively used in various handicrafts and traditional Indian garments.
The GST Council has proposed to cut these rates from the current 18 percent to 5 percent on this textile intermediate product. The decision was made at the 50th GST Council meeting, which took place in New Delhi yesterday.
The meeting was presided over by finance and corporate affairs minister Nirmala Sitharaman. Several measures were also recommended to streamline GST compliances, the ministry of finance said in a statement.
In addition to the proposed tax rate reduction, the Council has also recommended the regularisation of past GST payments related to this issue on an ‘as is’ basis.
The Council further decided to clarify that the supply of raw cotton, including kala cotton, by agriculturists to cooperatives falls under the taxable category via the reverse charge mechanism. This is also to be regularised for past periods on an ‘as is’ basis.
