SRINAGAR: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed the decisions taken in the latest meeting of the Goods and Services Tax (GST) Council, calling the rate reductions a landmark step that will provide significant relief to businesses and consumers in the region.
In a statement issued on Thursday, KCCI President Javid Ahmad Tenga described the cuts in GST on common-use items, handicrafts, and hotel rooms as timely measures for Kashmir’s economy, which has been under strain due to prolonged disruptions.
“This is indeed a landmark decision and a matter of great relief for us,” Tenga said. He recalled that the Chamber had consistently argued for a reduction in GST on handicrafts and essential items, having raised the matter with Union Commerce and Industry Minister Piyush Goyal during his visit to Srinagar in July, and later with Union Finance Minister Nirmala Sitharaman. “Yesterday’s approval by the GST Council is the fulfilment of a long-pending demand which the Chamber has been pursuing with utmost sincerity and persistence,” he said.
According to KCCI, the move holds special significance for Kashmir’s handicraft industry, which employs lakhs of artisans, weavers, and craftsmen, many from economically weaker sections. Tenga said that lowering GST from 12 percent to 5 percent would make Kashmiri handicrafts more competitive in both domestic and international markets. “This decision not only safeguards our cultural heritage but also provides livelihood security to families dependent on this sector. We hope that with this relief, the handicraft industry will regain momentum and contribute meaningfully to the overall economy of Jammu and Kashmir,” he said.
The Chamber noted that the handicraft sector has been among the worst affected in recent years. The GST relief, it said, will ease the burden on artisans, enhance the marketability of their products, and help stabilise a sector central to the region’s cultural and economic identity.
KCCI also highlighted the impact of the Council’s decision on the hospitality sector, particularly for budget and mid-market hotels. Under the new structure, rooms costing up to Rs 7,500 will attract GST at 5 percent without input tax credit, instead of the earlier 12 percent with ITC. The change will take effect from September 22.
The Chamber further welcomed the simplification of GST slabs from four (5, 12, 18 and 28 percent) to two (5 and 18 percent), with a special 40 percent slab for luxury items such as high-end cars, tobacco and cigarettes. This, it said, would streamline taxation and improve compliance.
Additionally, reductions in GST on daily-use products such as hair oil, corn flakes, televisions, and health and life insurance are expected to ease household budgets and stimulate domestic consumption. KCCI said these measures will cushion the local economy against global pressures, including the impact of US tariffs.
Expressing optimism, the Chamber said the Council’s decisions represent much-needed relief at a crucial time. “We are hopeful these steps will not only strengthen businesses and household incomes but also provide renewed impetus to the economy of Jammu and Kashmir,” it said.
