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MSME approaches FinMin to exempt Khadi from GST

The entire Khadi and Village Industries sector enjoyed tax exemption even in pre-independence era

Press Trust of India  |  New Delhi 

Prime Minister Narendra Modi works at a charkha at a ceremony to distribute charkhas to women before the National MSME Awards at Punjab Agricultural University in Ludhiana.Photo:PTI
Prime Minister Narendra Modi works at a charkha at a ceremony to distribute charkhas to women before the National MSME Awards at Punjab Agricultural University in Ludhiana.Photo:PTI

The MSME Ministry has asked its counterpart to consider exemption of sector from or ensure a seamless flow of input credit for Institutions to claim it, the said in today.

At present only yarn produced in the sector is exempted, while other products attract a 5 per cent Goods and Services (GST) levy.


The entire and Village Industries sector has enjoyed the benefit of exemption even in pre-independence era.

"With the exemption to the SSI sector being drastically reduced from the existing Rs 150 lakh to Rs 20 lakh, the exemption cover enjoyed by many of the Institutions has been removed. Institutions are now mandated to obtain registration under and also pay on various products which is 5 per cent," Minister of State for MSME Shri Giriraj Singh said in a written reply in

The minister informed that the products of the Village Industries sector were taxed at zero to 14.30 per cent before the while post-GST, the same products attract 12-28 per cent

"Ministry of MSME has approached Ministry of to consider the sector for exemption from or to ensure a seamless flow of input credit in order for Institutions to claim input credit," Singh said.

First Published: Thu, August 10 2017. 22:32 IST
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