The BIZ REPORTER
Srinagar, Sep 4: The Kashmir Chamber of Commerce and Industry (KCC\&I) has described the GST Council’s latest decisions as a major relief for the economy of Jammu and Kashmir, especially its handicraft and hospitality sectors which have long been under stress.
Reacting to the development, KCC\&I President Javid Ahmad Tenga said:
“This is indeed a landmark decision and a matter of great relief for us. The Chamber has consistently advocated for the reduction of GST on handicrafts and other essential items, as higher taxation has proven detrimental to our economy. We had raised this issue with the Hon’ble Union Minister of Commerce and Industry, Piyush Goyal, during our interaction with him at SKICC in July and later submitted a detailed representation to the Hon’ble Union Finance Minister Nirmala Sitharaman, seeking a reduction of GST rates from 12 percent to 5 percent. Yesterday’s approval by the GST Council is, therefore, the fulfilment of a long-pending demand which we have been pursuing with utmost sincerity and persistence.”
Tenga said the move would provide direct benefits to Kashmir’s handicraft sector, which is labour-intensive and sustains lakhs of artisans, weavers and craftsmen, many belonging to economically weaker sections.
“A reduction in GST will make their products more competitive in domestic as well as international markets. This decision safeguards our cultural heritage and provides livelihood security to thousands of families dependent on this sector. We hope the handicraft industry will now regain momentum and contribute more effectively to J\&K’s overall economy,” he added.
The Chamber observed that Kashmiri handicrafts have suffered heavily in recent years due to multiple disruptions. The GST cut, it said, would ease the burden on artisans, improve the marketability of products, and revive a sector of both cultural and economic importance.
On the hospitality sector, KCC\&I said guests of budget and mid-market hotels stand to benefit the most, with GST on rooms costing up to Rs 7,500 reduced from 12% (with ITC claims) to 5% (without ITC). The new rates will come into effect from September 22.
The Chamber also welcomed the GST Council’s decision to simplify the tax structure by cutting down the slabs from four (5, 12, 18 and 28 percent) to two (5 and 18 percent), with a special 40 percent slab for luxury goods such as high-end cars, tobacco and cigarettes. This, it said, would streamline taxation and improve compliance.
Additionally, the KCC\&I pointed out that the reduction in GST on common-use items including hair oil, corn flakes, televisions, and health and life insurance policies would not only ease the burden on households but also stimulate domestic spending and cushion the economy against global headwinds such as US tariffs.
Expressing hope that these reforms would provide much-needed respite, the Chamber said the measures are expected to strengthen both businesses and consumers in Jammu and Kashmir.
