‘Carpet industry needs Govt intervention’
Srinagar: The carpet traders are expecting slashing down of Good and Services Tax (GST) as the GST council is ongoing in Guwahati in Assam.
The industry is presently taxed at 12%, and the traders, who initially were seeking 5% cut, are hopeful that the GST will be cut to 5%.
“We have been demanding slashing down of GST from 12% and in the Business conclave meeting held on Sunday, I reiterated the demand,” Sheikh Ashiq Hussain, Chairman of Carpet Export and Promotion Council (CEPC) from J&K said.
He said that Finance Minister Dr Haseeb Drabu has promised in the Conclave that he will bat in GST Council for slashing down the tax to 5%.
“We have more than 1500 retail outlets in India and the retail business has suffered as well after GST. Given the present situation of business, global position of carpet industry and the GST impact from the last four months, the industry is on decline a and the carpet traders have pitched for certain revival packages,” he said.
The former KCCI president said that the government has promised the package for carpet industry and hopefully the announcement will be made before the budget session.
“The government should intervene and bail out business in the state as it has suffered immensely from the last some years,” Hussain said.
“Besides we are demanding waiving off artisan credit card. The chief minister on Sunday asked the finance minister too look into the demand,” he said.
“To my knowledge, it will be a historical decision and we are hopeful that government is working out on it,” he added.
Meanwhile, Drabu today said that GST Council will be generous to offer more flexibility for handicraft industry.
“It (handicrafts industry) is almost on the verge of closure. Uttar Pradesh has seen large-scale closures and our industry is also facing pressure. No one will want to see a heritage item like this die. I am almost certain that the council will be generous and also offer more flexibility in handicrafts,” Drabu told media in Guwahati after the GST Council meeting.
(With inputs from KNS)