In a statement, KCC&I highlighted that the Group of Ministers (GoM), chaired by Bihar Deputy Chief Minister Samrat Chaudhary, proposed significant GST rate increases during their December 2, 2024, meeting. The revised taxation structure suggests taxing textiles priced between Rs 1,500 and Rs 10,000 at 18 percent, while textiles above Rs 10,000 would fall under the highest GST slab of 28 percent. The proposal is set to be reviewed at the 55th GST Council meeting scheduled for December 21, 2024, in Jaisalmer.
KCC&I expressed grave concern over the adverse implications of this proposal, particularly for the economy of Jammu and Kashmir. The textiles and handicrafts sector, a cornerstone of the region’s economy and cultural identity, provides direct and indirect employment to over 2.5 lakh artisans, including many women and marginalised individuals.
“Handicraft products represent a critical economic sector, characterised by high labour dependency and extensive manual skills. These products generate over 75 percent of their value through wages, making them inherently labour-intensive,” the KCC&I said.
The trade body warned that the proposed GST hike could have catastrophic effects. It explained that applying a 28 per cent GST on products transported from Kashmir to showrooms in Delhi would impose a severe financial burden on small and medium enterprises, eroding their capital and jeopardizing their financial stability.
The KCC&I also emphasised the Jammu and Kashmir’s handicrafts, celebrated globally for their intricate craftsmanship and cultural significance, face a dire threat.
