Jammu and Kashmir Chief Minister Omar Abdullah recently cleared up some confusion about the GST on Kashmiri shawls, including the famous Pashmina shawls. During the 55th meeting of the GST Council in Jaisalmer, there was no discussion about raising the GST on these shawls. After the meeting, Abdullah told reporters, “There had been a lot of speculation that GST on shawls, particularly Pashmina shawls, would be hiked. We came prepared to ensure that wouldn’t happen. Thankfully, it wasn’t taken up.” This news has brought a huge sigh of relief to the artisans and businesses involved in making these shawls, who were worried about a possible tax increase from 12% to 28%.
The Kashmir Chamber of Commerce and Industries (KCCI) thanked everyone involved, saying that such a tax hike could have been devastating for the handicraft industry. They had already raised their concerns with key leaders like Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and Lieutenant Governor Manoj Sinha. They highlighted how over 300,000 artisans depend on this craft for their income.
The KCCI argued that taxing shawls at a higher rate would be unfair, as these products are part of cultural heritage and support many marginalized communities. They said, “The proposed hike would have dealt a catastrophic blow to the Kashmiri shawl industry, especially the Pashmina sector.”
Chief Minister Abdullah agreed, noting that any increase in GST would seriously harm the Pashmina shawl industry. He promised to keep fighting against such measures in the future. Both government officials and industry leaders hope that the GST Council will continue to recognize the special cultural and economic importance of Kashmiri shawls in its decisions.
