The Indian handloom and handicraft industry is not amused with the recent reduction in GST rates from 12-18 per cent to 5 per cent. The announcement was made at the 23rd GST Council meet in Guwahati, Assam on November 10, 2017.
The handloom and handicraft sectors demand complete exemption from GST. The issue was raised at a recent seminar on GST, organised by the Crafts Council of India.
The Council is likely to send a representation to the GST Council on the concerns raised by the artisans. The new tax regime has adversely impacted around nine crore weavers and artisans across the country, it reportedly said.
No taxes were applicable on handloom and handicraft products before the GST regime.
However, Assam Finance Minister and a member of GST Council, Himant Biswa Sarma, has indicated a further dip in the tax rates related to handicrafts and handloom products.
The matter is expected to be addressed at the next GST Council meeting, which is scheduled to be held in January 2018.
Furthermore, the GST Council is also reportedly planning to cut GST rate on carpets from the current 12 per cent to 5 per cent.
