Odisha urges Centre for GST exemption on handloom, handicrafts

Bhubaneswar: Chief Minister Naveen Patnaik on Friday requested Prime Minister Narendra Modi to extend GST exemption on handloom and handicraft products in the larger interest of the weavers and artisans of Odisha.
With the introduction of GST, handloom fabric and handloom apparels have been made taxable at 5 per cent and 12 per cent respectively. Handicrafts have been levied a GST rate of 12 per cent or 18 per cent depending on the product.
“Finance Minister had strongly argued in the GST Council that handloom and handicrafts should be kept in the exemption list, it was not agreed to. This is likely to lead to increase in prices of these products, which will adversely affect the livelihood of the poor families depending upon the production of these goods. I would, therefore, urge that the issue needs urgent reconsideration in the GST Council for extending GST exemption on these products in the interest of the weavers and artisans,” Naveen wrote in his letter.
Over 3.5 lakh people in the state are dependent on handloom and handicrafts to eke out their living and the state government had exempted handloom and handicraft products from Value Added Tax prior to introduction of GST. Besides, no excise duty was also levied on most of these products.
Earlier in the day, a delegation of Odisha Shilpi Mahasangha met the chief minister at the state secretariat and submitted a memorandum containing signatures of nearly 50, 000 artisans and weavers for GST exemption.