GoM meet : Kashmiri traders, craftsmen bat for lower GST on handicrafts 

More than 380,000 artisans in the Valley depend on handicrafts for their livelihood.
| Photo Credit:
IMRAN NISSAR

Artisans and traders from Kashmir’s famed handicrafts sector have called for a reduction in GST on their products as a group of Ministers met in New Delhi on Wednesday to review the Goods and Services Tax (GST) framework.

The Centre has proposed a simplified two-tier GST regime with slabs of 5 per cent and 18 per cent, while retaining a 40 per cent rate on select demerit goods. The plan would scrap the existing 12 per cent and 28 per cent brackets in a move aimed at easing the tax burden and cutting consumer costs.

“Since artisans and weavers form the backbone of handicrafts and wages make up a major share of costs, a 5 per cent GST is far more appropriate for the industry,” said Sheikh Ashiq, a leading carpet exporter and former President of the Kashmir Chamber of Commerce and Industry (KCCI).

Many handicraft products, including Pashmina shawls, chainstitch, crewel and namda, currently attract 12 per cent GST.

On Wednesday, KCCI wrote to Finance Minister Nirmala Sitharaman, pressing for a cut in GST on handicrafts from 12 per cent to 5 per cent. The body said the sector’s annual turnover had collapsed from nearly ₹17,000 crore a year ago to just ₹733 crore in 2024-25.

More than 380,000 artisans in the Valley depend on handicrafts for their livelihood. The 12 per cent GST has added to the industry’s strain, which is already hit by the growing influx of machine-made goods being passed off as handmade.

Mukhtar Ahmad, a Pashmina craftsman from Srinagar said that 12 per cent GST has put an additional burden on the trade.

“It has made Kashmiri handicrafts costlier in the market. Many artisans are struggling to sustain their livelihood under the rising costs”, he added. 

‘Unjustified tax’

The Kashmir Economic Alliance (KEA), an umbrella body of trade, transport, horticulture and other sectors, has also sought a waiver of GST on handicrafts, calling the levy “unjustified.”

“These crafts are more than just trade commodities. They reflect the cultural identity of the region and provide the main source of livelihood for thousands of artisans. GST on these items is unjustified,” said KEA spokesperson Qazi Tauseef.

He said a zero-tax regime on Kashmir Handicrafts is the only way to safeguard this heritage industry, protect artisan families and revive export competitiveness in international markets.

Published on August 20, 2025