Proposed GST Hike Sparks Concern Among Kashmiri Textile Artisans

ENA Sectors 2024-12-10 14:29:42 Srinagar, Dec 10 (KNN) The potential increase in Goods and Services Tax (GST) on Kashmir's traditional hand-crafted textiles has ignited widespread apprehension among local artisans and industry stakeholders. The proposed hike, which would raise the tax rate from 12 per cent to 28 per cent on textile products priced above Rs. 10,000, including Kashmiri shawls and crewel items, has prompted significant pushback from regional political leaders and business representatives. The recommendation comes from the Group of Ministers on Rate Rationalisation, chaired by Bihar's Deputy Chief Minister Samrat Chaudhary, with the proposal set to be discussed in the upcoming GST Council meeting on December 21. The potential tax increase has raised alarm about its impact on the centuries-old handicraft industry that is crucial to Kashmir's economic and cultural landscape. The Kashmir Chamber of Commerce and Industry (KCCI) has also raised significant concerns, bringing the issue to the attention of Prime Minister Narendra Modi, Lt. Governor Manoj Sinha, and Chief Minister Omar Abdullah. The economic implications are profound. Over 250,000 artisans, including a substantial number of women from marginalised communities, depend directly or indirectly on the textile and handicrafts industry. This sector represents more than an economic pursuit; it is a fundamental aspect of the region's cultural identity and economic survival. The KCCI has made a compelling alternative proposal, urging the government to reduce the existing GST rate to 5 per cent, citing the current economic challenges facing the Kashmir Valley. Political and business leaders are unified in their call for the government to reconsider the proposed tax hike, emphasising the need to balance revenue requirements with social equity and the protection of traditional craftsmanship. As the GST Council prepares to deliberate on this matter, the future of Kashmir's renowned textile industry hangs in the balance, with artisans and stakeholders anxiously awaiting the final decision. (KNN Bureau) 40200 https://knnindia.co.in/news/newsdetails/sectors/proposed-gst-hike-sparks-concern-among-kashmiri-textile-artisans 2024-12-10 14:29:42 knnindia.co.in Proposed GST Hike Sparks Concern Among Kashmiri Textile Artisans