GST Council Reduces Rates for Imitation Zari Thread


14 July  2023, Mumbai

The Indian GST Council has announced a significant reduction in GST rates for imitation zari thread, a key component in handicrafts and traditional Indian garments.

To benefit artisans

At the 50th GST Council meeting held in New Delhi, the council proposed a reduction from the existing 18% to just 5% for this vital textile intermediate product.


Finance and corporate affairs minister Nirmala Sitharaman presided over the meeting, which also saw recommendations for simplifying GST compliances.

Streamline compliance

Alongside the tax rate reduction, the council proposed regularizing past GST payments related to this matter.

Furthermore, it clarified that the supply of raw cotton by agriculturists to cooperatives, including kala cotton, falls under the taxable category through the reverse charge mechanism, with retroactive regularizations.

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