SRINAGAR: The Kashmir Chamber of Commerce and Industry has issued an urgent appeal to Prime Minister Narendra Modi, Lt Governor Manoj Sinha, and Chief Minister Omar Abdullah, imploring them to intervene against a proposed hike in the Goods and Services Tax (GST) for textiles and handicrafts.
The proposal, introduced by a Group of Ministers (GoM) led by Bihar’s Deputy Chief Minister Samrat Chaudhary, seeks to increase GST rates significantly. Under the new structure, textiles priced between Rs 1500 and Rs 10000 would attract 18 per cent GST, while those priced above Rs 10000 would face the highest slab of 28 per cent. This proposal will be tabled at the 55th GST Council meeting in Jaisalmer on December 21.
The Chamber has expressed alarm over the devastating consequences of the proposed hike on Jammu and Kashmir’s economy, particularly its handicrafts sector. This industry, which employs over 2.5 lakh artisans—many of whom are women and from marginalised communities—forms the backbone of the region’s economic and cultural identity.
“Handicrafts are more than just products; they represent centuries of heritage and provide critical employment to thousands. A 28 per cent GST will make these goods unaffordable, reduce demand, and push artisans towards unemployment,” a Chamber spokesperson said.
The labour-intensive nature of handicraft production, with over 75 per cent of product value generated through wages, makes the sector especially vulnerable. Artisans rely heavily on these earnings, and the chamber fears that the tax hike will erode the financial stability of small and medium enterprises.
The chamber highlighted that the proposed GST structure could render Kashmir’s handcrafted items uncompetitive both domestically and internationally. “When a manufacturing unit in Kashmir supplies goods to a showroom in Delhi, the application of 28 per cent GST places a heavy burden on dealers, who face long inventory cycles with no assurance of sales,” a Chamber statement noted.
This concern is further compounded by the fact that Jammu and Kashmir’s Chief Secretary had earlier recommended reducing GST on handicrafts from 12 per cent to 5 per cent to promote the sector. “The current proposal is a step backward and undermines previous efforts to ease financial pressures on artisans and traders,” the spokesman added.
The chamber urged the government to consider the unique challenges of Jammu and Kashmir’s economy, advocate for reducing GST on handicrafts to 5 per cent, and ensure that the voices of stakeholders are heard at the national level.
“This is not just an economic issue; it is about preserving our cultural heritage and safeguarding the livelihoods of thousands of skilled artisans,” the Chamber stressed, calling for immediate action to prevent what it termed a catastrophic policy change.
