Srinagar, Sep 4, KNT: The Kashmir Chamber of Commerce and Industry (KCC&I) has welcomed the decisions taken in the GST Council meeting held on Wednesday, calling the reduction of GST rates on common-use items, handicrafts, and hotel rooms a landmark relief for the economy of Jammu and Kashmir.
In a statement, KCC&I President Javid Ahmad Tenga said the move would directly benefit artisans, hoteliers and small businesses in the Valley that have been reeling under sustained economic pressure.
“This is indeed a landmark decision and a matter of great relief for us. The Kashmir Chamber of Commerce and Industry has consistently advocated for the reduction of GST on handicrafts and other essential items, as higher taxation has proven detrimental to our economy. We had raised this issue with Union Commerce Minister Piyush Goyal during our interaction at SKICC in July and later submitted a representation to Finance Minister Nirmala Sitharaman. Yesterday’s approval is the fulfilment of a long-pending demand which the Chamber has been pursuing with utmost sincerity and persistence,” Tenga said.
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He emphasised that Kashmir’s handicraft sector is unique, labour-intensive, and provides livelihood to lakhs of artisans, weavers and craftsmen, many from economically weaker sections. “A reduction in GST will directly benefit them by making their products more competitive in both national and international markets. This decision not only safeguards our cultural heritage but also provides livelihood security to families dependent on this sector,” he added.
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The Chamber highlighted that the handicraft industry has been among the worst-hit sectors in recent years due to disruptions ranging from lockdowns to market slowdowns. It expressed hope that the rate cut would revive demand, improve marketability and help the sector regain momentum.
The GST reduction on hotel rooms costing up to Rs 7,500, from 12 percent with input tax credit to 5 percent without ITC, was also welcomed. The KCC&I said this would particularly benefit budget and mid-market hotels, attracting more guests to the Valley. The new rate will take effect from September 22.
The Chamber also lauded the Council’s decision to simplify the GST structure by reducing the number of slabs from four (5, 12, 18 and 28 percent) to two (5 and 18 percent), with a special 40 percent slab for select luxury goods such as high-end cars, tobacco and cigarettes. According to the KCC&I, this will streamline taxation and improve compliance.
It further noted that rate cuts on everyday items such as hair oil, corn flakes, televisions, and even on health and life insurance premiums will not only ease the burden on households but also stimulate domestic spending at a time when global economic pressures, including US tariffs, are impacting India’s growth.
The KCC&I expressed hope that these measures will provide much-needed relief to both businesses and consumers and contribute to strengthening the economy of Jammu and Kashmir. [KNT]
