India, one of the most culturally and traditionally rich county still has lakhs of crores of people indulging in traditional artistry. When I say a village, the image which pops in our mind is of few women sitting around a tree and weaving something, potters making clay pots and other such handmade items. Ever wondered what does the GST has in store for them?
In earlier times, when there were no factories, machines and industries everything was handmade. From clothes to shoes to utensils and jewellery, everything was crafted from own hands. And people who made such beautiful things were called Artisans.
Artisans are people who make things from hands, without the use of electricity or machinery.
But with the rapid industrialisation, artisans lost out on everything.
Work of 100 men was done by a single machine. People no longer wanted handmade items, everyone desired the machinised products. And like that, the artisans became voiceless.
Now, In the GST process, the cottage and tiny sector, which has a workforce of 110 lakh, has remained voiceless.
I’ll tell you how –
· Natural dyestuffs from forest produce, stone and minerals — which do not pollute water bodies the way chemical dyes do — attract a tax of 18 per cent
· Hand bags and shopping bags of cotton and jute, that provide an alternative to hazardous plastic bags, attract 18 per cent tax.
· Rubberised friendship bangles are cheaper than handmade glass bangles which are taxed while there is zero tax on factory-made plastic bangles.
· Brooms made of a certain grass are not taxed while all brooms made locally from other kinds of grass attract 5 per cent tax.
· Copper coated cow bells, made by poor artisans living in the villages of Kutch and are used by nomadic communities for their camels, cows and goats attract 18 per cent tax
· Women are producers of mats, baskets and fans, using palm leaves, sikki grass, sarpat grass, dried date palm or coconut palm leaves. These products are now taxed at 12 per cent.
· Handmade paper, made from materials recycled from textile fibres, agricultural waste, assorted local grasses and other organic materials, is taxed at 18 per cent.
· We speak of “Make in India” and “Skill India” programmes but seem to be turning people into traders of Chinese goods, which are mechanically produced.
· Plastic flowers made in China are seen being sold at Dilli Haat these days, when it is supposed to be a marketplace purely for Indian crafts. Obviously, these flowers are cheaper than the handmade dried flowers from Manipur.
The marketing season for all craftspersons starts from September and goes on till the end of the festive season in March.
But look at the figures below –
· 76 per cent did not know they had to register under GST even if they earn Rs 20 lakh in order to market at bazaars and melas across the country
· 81 per cent do not understand procedures for GST pertaining to their craft
· 75 per cent do not know the tax applicable to their craft products
· only 40 per cent have access to computers for online procedures
· 57 per cent are dependent on an accountant or CA
Large numbers of crafts people will lose their incomes during their best earning season of this year, thanks to a lack of comprehension of GST requirements.
The only industries in the country that
· provides low cost,
· green livelihood opportunities to millions of families,
· supplementing incomes in seasons of agrarian distress,
· checking migration and
· preserving traditional economic relationships
need our urgent attention before we settle into the new GST regime