Handloom weavers seek GST exemption

By

Isabelle Crossley

Published
Nov 15, 2017

At a Crafts Council seminar on November 14, many artisans have demanded GST exemption for handloom textiles stating their disappointment following Friday’s GST Council’s meeting.

Despite the GST Council lowering tax rates on handwoven textiles last Friday, there has been another push for GST exemption from dissatisfied workers and textile businesses. Speaking at the Crafts Council seminar, the council’s President, Kasturi Gupta Menon, said: “We will take a resolution after the seminar based on the demands from the artisans and will send a representation to the GST Council."

The GST Council met on Friday November 10 to review GST rates and, following the meeting, the council cut GST on handloom textiles from between 18 and 20 percent to 12 percent. GST on Khadi was not lowered as it has previously been made exempt from the GST altogether in an attempt to promote the traditional textile.

Previously, under the Value Added Tax (VAT) regime, handloom textiles were exempt from tax and so the introduction of GST rates in July was a massive change for many textile producers who have been struggling ever since. With this backdrop, it is unsurprising that many were left dissatisfied despite the recent GST reduction.

As the Indian Government is promoting the production and use of handloom textiles as part of their “Make in India” campaign, many weavers were surprised by the introduction of high tax rates that would cause them to need to hike prices and potentially face fewer orders.

India has around nine crore handloom weavers and, following the introduction of the GST, many have been forced to switch profession. How the government responds to the weaver’s latest outcry, therefore, may well determine the future of handloom in India.