SRINAGAR: Jammu and Kashmir Chief Minister Omar Abdullah has clarified that the proposed GST hike on Kashmiri shawls, including the iconic Pashmina shawls, was not discussed during the 55th meeting of the GST Council held in Jaisalmer. Speaking to reporters after the meeting, Abdullah said, “There had been a lot of speculation that GST on shawls, particularly Pashmina shawls, would be hiked. We came prepared to ensure that wouldn’t happen. Thankfully, it wasn’t taken up.”
This development has brought immense relief to the artisans and stakeholders of the Kashmiri shawl industry, which faced the threat of a GST increase from 12 to 28 per cent. The Kashmir Chamber of Commerce and Industries (KCCI) also expressed gratitude, emphasising that such a hike could have been devastating for the handicraft sector. The chamber had actively raised concerns with Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Lieutenant Governor Manoj Sinha, and other key officials, highlighting the potential impact on over 300,000 artisans who rely on this craft for their livelihoods.
The KCCI stated that classifying shawls under a higher tax bracket would have equated them to a ‘sin tax,’ a move they called unjustifiable for a product that represents cultural heritage and sustains marginalised communities. “The proposed hike would have dealt a catastrophic blow to the Kashmiri shawl industry, especially the Pashmina sector,” KCCI remarked.
The Chief Minister echoed these concerns, stating that any increase in GST would “badly hit the Pashmina shawl industry” and vowed to continue opposing such measures in the future. Both the government and industry stakeholders are hopeful that the GST Council will remain considerate of the unique socio-economic and cultural importance of Kashmiri shawls in its future decisions.
