Keep Labour-Intensive Sectors Out Of GST Ambit: Commerce Minister
Exporters should be given “ab-initio exemption” from the GST regime, Sitharaman said.
The commerce ministry on Tuesday asked the GST Council to grant ab-initio exemption to exporters from the Goods and Services Tax and keep labour-intensive sectors like leather and plantation completely out of the tax net or in the lowest slab. Commerce and Industry Minister Nirmala Sitharaman, after attending the meeting of the Council, said ministry officials gave presentation to the members.
"For the leather industry, we want complete exemption from the GST or keep them in the lowest slab. We made a strong pitch on that as the sector creates jobs," she told reporters in New Delhi.
Sitharaman also said that the ministry favoured a "fair" look under the GST regime for the cement industry, where taxation is "very high currently". The sector is important as the government is looking at schemes like housing for all, besides modernising road, port and other infrastructure.
She said that exporters should be given "ab-initio exemption" from the upcoming GST regime.
As regards the plantation sector such as coffee, the minister said, “Ideally, we would like to completely keep it out” from the ambit of GST, but if at all it comes under the new indirect tax regime, “it should be kept in the lowest slab”.
When asked whether the commerce ministry has sought a cut in the import duty on gold, she said, “I have been talking about cutting the duty as gold is a critical raw material for gems and jewellery sector.” She said that restriction-free gold import also discourages smuggling.
The imported gold is mainly used by gems and jewellery exporters and people usually consider investment in the precious metal as safe haven.
India, the world's second biggest gold consumer after China, imported 650 tonnes in 2015-16.
The gems and jewellery industry had in July urged Prime Minister Narendra Modi to reduce gold import duty to 5 percent from the current 10 percent to check shift of business to neighbouring countries.