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Major relief to Kashmiri traders
Major relief to Kashmiri traders
In our previous articles, we explained how small sector handicraft artisans and manufacturers are bearing the brunt of GST. But decisions taken by GST council for Kashmiri traders shows government is taking steps towards solving problems of small business traders who are engaged in traditional jobs.
Last month, the J&K Government put up a proposal in front of GST council to slash taxes in order to protect interest of the small traders of the state.
Conceding to the continuous and justified demands of traders involved in Handicrafts sector, the government pleaded with the GST council to reduce tax rate on handicrafts.
The GST council reviewed the demands put forth and decided to
· Reduce the tax rate on Handicrafts sector from 12% to 5%.
· Small dealers and workers who move goods from 1 state to another were exempted from registration under the IGST Act.
· Tax rate on walnuts, which has a big impact on J&K economy, has been brought down to 5% from 12%.
· Tax rate on Paper Machie and Willow Wicker has also been reduced from 12% to 5%.
Besides these measures, the threshold limit for handicrafts sector has been kept at Rs 20 lakhs while it is Rs 10 lakhs in other states.
This decision will benefit small handicrafts traders who earn their livelihood by selling paper machie items, carpets, shawls and willow wicker items in other states.
All these decisions, which revolve around the ease of doing business will immensely benefit the small traders.
Let’s hope governments of other states where handicraft sectors flourish take inspiration J&K Govt and take similar steps.
