Bhubaneswar: Acting on the state government’s persistent demand, the Goods and Services Tax (GST) Council has brought down the tax imposed on handicraft products from 18 per cent to 5.
‘‘The GST rate on Sabai ropes and cups and plates stitched from sal/soali leaves has been reduced to 5 per cent while the tax on clay idols which was 28 per cent has been exempted from GST,” finance minister Shashi Bhusan Behera told reporters here Monday.
Similarly, Khadi fabric sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions and outlets have been exempted from tax, he said, adding, the tax rate on idols of stone has been reduced from 28 per cent to 12 per cent.
With this decision, the prices of the handicraft products and idols would be reduced. This would help strengthen the livelihood of the people depending on these products, he added.
Earlier, the tax rates on different handicraft goods ranged between 28 per cent and 12 per cent under GST while the tax rate on idols made of clay and stone was 28 per cent.
The state government had been demanding tax exemption on handicraft and handloom products. “In this regard, Chief Minister Naveen Patnaik had written a letter to Prime Minister Narendra Modi to exempt handicrafts and handloom goods from GST,’’ the finance minister said.
Behera himself had also written a letter to Union Finance Minister Arun Jaitley to exempt handicraft and other goods under GST. He said he had also put forth arguments in favour of exempting these goods in the meetings of the GST Council meet held recently in Hyderabad and the council has slashed the rates.
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