Finance Ministry clarified National flags is exempt from GST under â€œHar Ghar Tirangaâ€ initiative
National flags made up of Hand-woven, hand-spun national flags made of cotton, silk, wool or Khadi are already exempt from GST.
On Friday Finance minister said, all Indian flags will be exempt from GST irrespective of whether is handmade or machine made or whether it’s made up with cotton or polyester. The announcement came after a new initiative “Har Ghar Tiranga” taken under “Azadi Ka Amrit Mahotsav“ – (an initiative of the Government of India celebrating and commemorate 75 years of independence and the glorious history of it's people, culture and achievements.)
In an office memorandum, the Revenue Department clarified that polyester or machine-made tricolour too would be exempt from the levy following amendments to the 'Flag Code of India, 2002' in December last year.
"It has been clarified that the sale of the Indian National Flag, adhering to the Flag Code 2002 and its subsequent amendments, is exempt from GST,"