In the wake of repeated demand of the State Government, the GST Council has reduced the Goods and Services Tax (GST) on handicraft and handloom products, informed Finance Minister Sashi Bhusan Behera at a Press meet here on Monday.
The tax on Sabai grass ropes and Sal leaf plates and cups was slashed five per cent from 18 per cent and the tax on clay sculptures was exempted. The tax on stone sculptures was brought down to 12 per cent from 28 per cent, Behera said.
Besides, five per cent of the tax was slashed on Khadi clothes and fabrics being sold by the organisations certified by the Khadi and Village Industries Commission (KVIC).
Also, the 12-per cent tax was exempted from other handicraft products, which had earlier been charged with a 18-per cent tax, the Minister informed.
Odisha had been demanding exemption of the GST on handicraft and handloom products.
Chief Minister Naveen Patnaik had written a letter to Prime Minister Narendra Modi in this regard.
The State Government had argued that poor tribals, weavers and sculptors depend on these products and the high taxes would affect their livelihoods.
Bowing to Odisha’s demand, the GST Council at a meeting held in Hyderabad has slashed the taxes on the products, informed Behera.