‘Will recommend GST cut for Kashmir handicrafts,’ Goyal tells KCCI
Srinagar, July 6: Union Minister for Commerce and Industry Piyush Goyal on Sunday assured the Kashmir Chamber of Commerce and Industry (KCCI) that he would recommend a reduction in the Goods and Services Tax (GST) on handicrafts and handloom products, and extended support for boosting exports and industrial infrastructure in Jammu and Kashmir.
President of KCCI, Javid Ahmad Tenga, who led a delegation that met the Union Minister at SKICC, told Greater Kashmir that a detailed memorandum was submitted highlighting key economic challenges, with a particular focus on the declining export sector.
“We specifically raised the issue of falling exports, especially in the handicrafts sector, which constitutes a major portion of our overseas trade. The existing 12 percent GST is burdensome for artisans and exporters. The Minister assured us that he would recommend its reduction to 5 per cent,” Tenga said.
According to Tenga, the Minister acknowledged the concerns and advised that a formal proposal be submitted both to him and the Finance Ministry. “He assured us that efforts would be made to bring down the tax rate and that the Centre would explore viable relief measures for artisans, particularly in Jammu and Kashmir,” he added.
The Chamber also pressed for dedicated warehousing space for Kashmiri exporters in Bharat Mart, Dubai, and other upcoming hubs in Europe. Goyal assured that such facilities would be made available at concessional rates to help local businesses access global markets.
The memorandum urged the inclusion of Jammu and Kashmir as a focus region under the national Export Promotion Mission and the Market Access Initiative. It also called for region-specific export guidelines and support frameworks tailored to the unique needs of the UT.
Among other critical issues raised was the ₹438 cap under the RoSCTL (Rebate of State and Central Taxes and Levies) scheme. KCCI urged that the ceiling be removed and full FOB-based (Free on Board) incentives be extended to handicraft exporters. The Minister reportedly assured that the matter would be examined.
The delegation also demanded the establishment of an Inland Container Depot (ICD) in Kashmir to streamline export logistics and reduce dependency on outside terminals. Additionally, the Chamber sought the reintroduction of the 3 percent interest subvention scheme for artisan-led businesses and the setting up of a Pashmina testing lab in Srinagar to meet international quality standards.
On the industrial front, the KCCI proposed a new industrial policy that would include a 25 percent reservation for local entrepreneurs. To protect the region’s horticulture sector, the Chamber sought the continuation of existing import duties and a minimum import price of ₹90 per kilogram for apples, walnuts, and almonds to protect local growers from unfair competition.
KCCI also pushed for greater representation of Kashmiri exporters in international trade fairs and official delegations.
According to Tenga, the Minister expressed agreement and assured that efforts would be made to ensure adequate participation of Kashmir’s business community in such events.
“We discussed the need to promote our IT and electronics sector as well. The Minister acknowledged its potential to generate employment and integrate the region with the national digital economy,” Tenga said.
The Chamber also stressed the need for urgent upgradation of Srinagar Airport, particularly cargo facilities, and called for the expedited expansion of the terminal. Tourism infrastructure development in under-explored destinations like Bangus, Gurez, Doodhpathri, and Tosamaidan also featured in the discussions.
The Union Minister assured that a follow-up meeting would be held soon to review the issues raised in detail. “He responded positively to our proposals and promised to look into them seriously. We are hopeful of timely action,” Tenga added.
The KCCI delegation included Senior Vice President Ashaq Hussain Shangloo, Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Ahmad Bakshi, Joint Secretary General Umar Nazir Tibetbaqal, and Executive Committee members Muzaffar Majid, Mohammad Lateef Bhat, Mubashir Shaw, and Sameer Ahsan. The team represented a cross-section of Kashmir’s economic sectors including handicrafts, exports, horticulture, and IT.
