Excelsior Correspondent
JAMMU, Dec 6: The Kashmir Chamber of Commerce and Industry (KCC&I) has appealed to Prime Minister Narendra Modi, Lieutenant Governor Manoj Sinha, and Chief Minister Omar Abdullah regarding the proposed GST hike on textile and handicraft products.
In a statement, KCCI said a Group of Ministers (GoM), led by Bihar’s Deputy Chief Minister Samrat Chaudhary, had proposed a significant increase in GST rates during a meeting on December 2, 2024.
The statement said that the plan suggested taxing textiles priced between Rs 1,500 and Rs 10,000 at 18%, and textiles above Rs 10,000 at the highest GST slab of 28%.
This proposal, as per the statement, will be discussed at the 55th GST Council meeting on December 21, 2024, in Jaisalmer.
“The potential impact of the proposed tax hike on Jammu and Kashmir’s economy is severe,” the statement said.
A KCCI official said that the textile and handicraft sector is vital to the region, providing jobs for over 2.5 lakh artisans, including many women and marginalized individuals.
He said handicrafts are particularly labour-intensive, with artisans earning over 75% of the product’s value through wages.
“A 28% GST would burden small and medium businesses, who must bear this cost without a guarantee of sales, leading to financial instability,” the KCCI official said.
He further claimed that the higher prices would make handicraft products unaffordable for both domestic and international markets, resulting in decreased demand and potential job losses.
Many artisans could be forced to abandon their craft, he said.
“Jammu and Kashmir’s handicrafts are renowned worldwide for their intricate craftsmanship. The proposed tax hike threatens this heritage and could disrupt the entire supply chain, including suppliers and exporters,” he said.
He added that KCC&I had previously urged the Ministry of Commerce to reduce the GST on handicrafts from 12% to 5%, a move aimed at promoting the sector.
“The current proposal, however, contradicts this, risking severe damage to the industry,” he said.
The KCC&I has called for immediate intervention to ensure the preservation of the region’s cultural heritage and the livelihoods of its artisans.
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