In view of an adverse impact of the goods and services tax (GST) on exports — particularly in the handicrafts, apparel and carpet sectors — the government is looking at making certain concessions in rates and allowing additional input tax credits to the industry, including a likely reduction of rates on finished carpets and expanding the list of duty-free imports of essential embellishment to make them competitive in the international market. The carpet industry had demanded the duty to be brought down from the existing 12 per cent to 5 per cent to make Indian carpets competitive internationally. The proposals are being worked out by the Ministries of Finance and textiles after a marathon meeting Finance Minister Piyush Goyal and textiles Minister Smriti Irani had with representatives of various export promotion councils and industry captains recently. The J&K and Uttar Pradesh Governments had made a strong case for concessions and the decision to reduce rates was on the table at least since last November.
