No GST hike on Kashmiri shawls: Kashmir trade body expresses relief

Srinagar, Dec 21: The Kashmir Chamber of Commerce and Industries (KCCI) expressed relief as the agenda of the proposed GST hike on Kashmiri shawls from 12 to 28 % etc was not taken up in the GST council meeting in Jaisalmer today.

In a statement it said that KCCI had actively engaged in discussions regarding the proposed GST increase on Kashmiri shawls, raising concerns through various platforms including direct representations to Prime Minister Narendra Modi, Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah and heads of other chambers/ export promotion Councils. Omar Abdullah represented Jammu and Kashmir at the GST Council meeting.

The chamber has been vocal about the potentially devastating impact such a tax increase could have on the local handicraft sector. "The proposed hike would have dealt a catastrophic blow to the Kashmiri shawl industry, potentially categorizing these cultural treasures under a 'sin tax' bracket," This classification would have been particularly harmful to the artisans who depend on this craft for their livelihood.

KCCI urged Finance Minister Nirmala Sitharaman and the members of the GST Council for their considerate decision to not increase the GST rate on our traditional Kashmiri shawls and hoped that in coming GST council meetings also there won’t be any hike on GST of Kashmir shawls.

The KCCI emphasised that the shawl industry is not just a commercial entity but a cultural heritage that supports over 300,000 artisans, providing essential livelihood opportunities to many from marginalized communities.