Panel on VAT to consider exemption on shawls

The Empowered Committee of State Finance Ministers on Saturday said it will consider VAT exemptions on shawls, woodcarving and woollen tops after its 6th meeting here.

The committee would look into representations by trade federations, businessmen and others for VAT exemption on shawls, woodcarving and woollen tops and the same would be actively considered, West Bengal Finance Minister and Chairman of the Committee Asim Dasgupta told reporters.

He said the Centre had alloted 46 services to the states for inclusion in the state tax net. The detailed deliberations on finalising the areas and working out a mechanism on inclusion of these services under state tax system would be carried forward, he said.

Dasgupta said exemption of public utility services such as the government schools and hospitals from tax net would also be considered.

Chhattisgarh Chief Minister Raman Singh and Deputy Chief Ministers and Finance Ministers of 10 states, including Jammu and Kashmir, participated in the meeting.