Bhubaneswar: September 02: Writing a letter to Prime Minister of India Narendra Modi, Odisha Chief Minister Naveen Patnaik urged to exempt handloom and handicraft products from the Goods and Services Tax.
CM wrote, ‘With the introduction of GST with effect from 1st July’2017, handloom fabric and handloom apparels have been made taxable with GST rates of 5% and 12% respectively and handicrafts have been levied a GST rate of 12% or 18% depending upon the type of handicraft. Although my finance minister had strongly argued in the GST council that handloom and handicraft should be kept in exemption list, it was not agreed to. This is likely to lead to increase in prices of these products, which will adversely affect the livelihood of the poor families depending upon the production of these goods.’
He further added, ‘Odisha is well known for the production of handloom and handicraft products. A large number of weaver and artisan families, exceeding 3.5 Lakh, earn their livelihood from this production base, which is next only to agriculture. Odisha’s handloom and handicrafts form an important part of our cultural heritage. These products are mostly used by the common people. Therefore, prior to the introduction of GST, the state government had always exempted these products from Value Added Tax. In most of these products, there was also no excise duty.’
