Exempt GST from handloom and handicraft products, urges Odisha CM
What's the story
Odisha Chief Minister Naveen Patnaik has written a letter to Prime Minister Narendra Modi saying that handloom and handicraft products of the state should be exempted from the Goods and Services Tax (GST). Patnaik said that the GST Council should immediately reconsider extending GST exemption to these products, as the livelihood of weavers and artisans' families, exceeding 3.5 lakh, are at risk. Here's more.
Handloom fabrics
They can't afford it
Patnaik mentioned that Odisha's handloom and handicraft products are well known and a considerable amount of the state's constituents depend on this diverse production base for their livelihood. Handloom fabrics and handloom apparels attract 5% and 12% GST, respectively. Depending on their type, handicrafts attract 12% or 18% GST.
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Part of the cultural heritage
Patnaik in his letter wrote, "Odisha's handloom and handicrafts form an important part of our cultural heritage... the state government had always exempted these products from Value Added Tax (VAT). In most of these products, there was also no excise duty."