New Delhi, Oct 11 (KNN) Leather Industry in Agra comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) has raised concerns over the Goods and Services Tax (GST) rates, Council for Leather Exports informed.

Puran Dawar , Chairman of Council for leather export(North) told KNN that GST is a good move by the  government  but the decision of GST council of considering leather a luxury good is not right.

He added that leather industry is a household and basic industry in Agra which employs around 3 lakh people,So It should be treated at par with textile industry , hence its  GST rates must be reduced.

On the ideal GST rates he commented that the GST should be 5% for leather goods worth Rs.1000 and 12 % for the rest.

He also said that the government has stopped paying tax refunds to exporters  under the Duty Drawback Scheme (DDS) and the tax refunds for the months of July, August, September have  still not processed which has increased the woes of the industry.

As of now leather comes under the GST slab of 12% and leather goods face 28% GST rate. (KNN/AG)