GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
*****
LOK SABHA
UNSTARRED QUESTION NO. 1349
TO BE ANSWERED ON MONDAY, JULY 25TH 2022

IMPACT OF GST ON AGRICULTURAL/ CLOTH/ FOOTWEAR ITEMS

1349. SHRI NAMA NAGESWARA RAO:

Will the Minister of FINANCE be pleased to state:

(a) the details of impact of Goods and Services Tax (GST) on items relating to agriculture, cloth, footwear etc, due to which the poor people are suffering and unable to bear the burden;

(b) whether the Government has taken any action or proposes to take any action to remove GST on these items; and

(c) if so, the details thereof?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a to c): GST rates are prescribed on the recommendation of GST Council, which consists of Union Finance Minister and Minister as nominated by State governments, taking a number of factors into account including pre-GST tax incidence. Items like agriculture produce, cloth and footwear consumed by poor are either exempt or attract GST at a lower rate of 5%/12%. A Group of Ministers (GoM) has been constituted by the GST Council with GST Rate rationalization as its terms of reference