Srinagar: Jammu and Kashmir Chief Minister Omar Abdullah has announced that the proposed GST hike on Kashmiri shawls was not discussed during the 55th meeting of the GST Council. The meeting, chaired by Finance Minister Nirmala Sitharaman, took place in Jaisalmer, Rajasthan.
Speaking to reporters after the meeting, Omar Abdullah described the outcome as a relief for J&K’s artisans.
“While some issues were agreed upon and others deferred, there was significant speculation about a potential GST hike on shawls, especially Pashmina shawls. We came prepared to oppose such a move, and fortunately, it wasn’t raised,” he said.
Omar emphasised that increasing the tax on Kashmiri shawls would devastate the Pashmina industry. “We will ensure that any such proposals are not entertained in the future, as they pose a severe threat to this industry,” he added.
The proposed increase in GST from 12% to 28% on shawls priced above Rs10,000 had raised concerns among Valley artisans, as shawl production is a labour-intensive process. Traders and political parties warned that the hike would severely impact the trade, jeopardizing the livelihoods of artisans and traders.
Earlier, various Kashmiri leaders had voiced concern over the proposed GST hike move. PDP Chief Mehbooba Mufti had urged CM Omar Abdullah to clarify his stance on the issue, voicing concerns over the sustainability of Kashmiri crafts.
“Raising GST to 28% would spell the end of our traditional art. This, along with development on horticulture land, seems like an attempt to destroy our heritage,” she said.
She expressed hope that the National Conference government would address these concerns and safeguard the livelihoods of artisans.
