GST Cut on Pashmina Boosts Traditional Handicraft Sector

GST Cut on Pashmina Boosts Traditional Handicraft Sector

A Minister announced that the reduction in the Goods and Services Tax (GST) rate on Pashmina products has provided a significant boost to the traditional handicraft sector, particularly in regions specializing in this high-value textile.

Key Impact of the GST Rate Cut

• Affordability and Sales: The tax rate reduction directly lowered the retail price of Pashmina shawls, stoles, and fabrics, immediately increasing their affordability and stimulating consumer demand in both domestic and international markets.
• Support for Artisans: The increased sales volume helps stabilize the income of the estimated handicraft artisans and weavers involved in the intricate process of spinning and weaving Pashmina wool. This support is vital for preserving the centuries-old traditional craftsmanship.
• Competitiveness: By reducing the final price, the tax cut makes genuine Pashmina products more competitive against cheaper, mass-produced imitations, thereby strengthening the premium market segment.

Context

The GST rate reduction on Pashmina products is part of the government’s wider rate rationalization effort aimed at empowering local and GI-tagged (Geographical Indication) artisanal products and bolstering rural livelihoods.