The GST on slide fasteners (zips) has been reduced to 12 per cent from 18 per cent. This was announced by the Union Finance & Corporate Affairs Minister Nirmala Sitharaman after 37th meeting of GST Council.
Indian zipper manufacturers welcomed the decision and shared that this announcement will streamline their working and bring uniformity.
Moreover, it will help zipper manufacturers have more working capital as they have to pay less GST. However, the decision may not have any impact on the demand of zippers as finished zippers already have 12 per cent GST.
“We have to pay 18 per cent GST on whatever raw material we consume but got refund of only 12 per cent. Whatever discussion we had with our GST experts, it seems that GST has been reduced on all kinds of raw materials for zippers. However, this step of Government is worth appreciation,” said Pawan Jain, CEO, RTC Zippers, Delhi a respected name in zipper industry.
The Council also decided that a uniform GST rate of 12 per cent will be levied on woven/non-woven polyethene bags and to exempt prospectively services by way of storage or warehousing of cotton, flax, and jute.
To promote export, it was decided to exempt services provided by an intermediary to a supplier of goods or recipient of goods when both the supplier and recipient are located outside the taxable territory.