SRINAGAR: The Goods and Services Tax (GST) Council’s recent decision to slash GST rates on several handicraft and textile products from 12% to 5% has come as a major relief for Kashmir’s traditional handicraft sector, especially artisans engaged in handmade carpets, tapestries, lace, and other crafts.
The 28th GST Council meeting resolved to make art and handicraft items “more affordable than ever,” reducing the financial burden on both artisans and consumers. Items such as idols made of wood, stone and metals, paintings, handbags, jewellery boxes, and wooden frames will now attract only 5% GST, down from 12%.
For Kashmir, the most significant impact will be on its globally renowned handmade carpet industry, which has struggled in recent years due to falling demand and rising costs. Carpets and other textile floor coverings, hand-woven tapestries, handmade lace, and braids—all core to Kashmiri craft traditions—will now be taxed at just 5%.
“This move will give our carpets a competitive edge in the domestic and global markets,” said a Srinagar-based exporter. “The high GST rate was making Kashmiri carpets less attractive compared to machine-made substitutes. Now, buyers will find handmade products more affordable.”
According to the Council’s notification, a wide range of textile and craft items have seen tax cuts:
- Handmade carpets and handloom rugs – GST reduced from 12% to 5%
- Handmade lace, braids, and embroidery – down to 5%
- Hand-woven tapestries and zari borders – down to 5%
- Embroidered badges, motifs, and similar works – down to 5%
The decision is expected to boost artisan incomes, encourage exports, and protect traditional skills that have been under threat. Kashmir’s carpet industry, which employs thousands of artisans, had witnessed a decline in production and sales partly due to tax burdens.
This relief comes in the backdrop of a massive tariff hike of 52% by the Trump administration for a variety of Indian exports, including handicrafts. -(ZT)
