Exempt khadi items from GST: Kalraj Mishra

The minister of micro, small and medium enterprises (MSME) Kalraj Mishra has hoped for the exemption of khadi products under the Goods and Services Tax (GST), which currently attract 5 to 12 per cent taxes. He added that the GST Council is re-analysing taxes levied on various khadi items for the benefit of weavers and spinners associated with the khadi industry.

While speaking at a meeting of khadi institutions in Delhi, Mishra added that finance minister Arun Jaitley has assured him to exempt khadi industry from GST to help the economically backward spinners and weavers.

He also said that in order to make khadi a global brand, exhibitions should be organised at various embassies and high commissions.

Minister of state for MSME Giriraj Singh spoke about providing sustainable economic growth to khadi artisans. He expressed concern over the reduction in the number of artisans which went from 11 lakh in 1950 to about 2 lakh at present.

Vinai Kumar Saxena, chairman of Khadi and Village Industries Commission (KVIC) was also present at the meeting and said that lower wages compared with other organisations has lowered the morale of the skilled workers and has discouraged new generation of entrepreneurs to enter the segment.

A plan is currently being made to make optimum use of khadi institutions' non-profitable and dormant assets, added Saxena. They can either be revamped or disposed to deposit liabilities as loans from various institutions.