(a) whether Khadi and Village Industries has sought exemption for its products from the Value Added Tax (VAT) and other State Taxes;
(b) if so, the details thereof;
(c) whether certain States like Kerala, Rajasthan etc. have requested for VAT exemption for Khadi products;
(d) if so, the details thereof, State-wise; and
(e) the response of the Government on each such request?
MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF AGRO AND RURAL INDUSTRIES (SHRI SANGH PRIYA GAUTAM)
(a) & (b): Yes, Sir. Khadi and Village Industries Commission
(KVIC) has requested the Chief Ministers of all States/UTs for
exempting Khadi and Village Industries (KVI) products from State
taxes/VAT. Further, KVIC is pursuing with the Empowered Committee
of State Finance Ministers, (Monitoring Tax Reforms including
VAT), Ministry of Finance, to exempt all KVI products from Value
Added Tax (VAT).
(c) & (d): Yes, Sir. There is a broad agreement on this amongst
States.
(e): Final response to the above request is awaited from the
Empowered Committee of State Finance Ministers, (Monitoring Tax
Reforms including VAT), Ministry of Finance.