Srinagar, Publish Date: Nov 13 2017
Carpets are likley to see cut in the Goods and Services Tax (GST) rate from 12 per cent to five per cent, a media report said.
GST Council may lower the rate on carpets at its next meeting amid reports of massive closure of units in Uttar Pradesh and Jammu and Kashmir, reported The Times of India.
Presently, 12% GST is levied on carpets.
“It is almost on the verge of closure. Uttar Pradesh has seen large-scale closures and our industry is also facing pressure. No one will want to see a heritage item like this die. I am almost certain that the council will be generous and also offer more flexibility in handicrafts,” J&K finance minister Haseeb Drabu told TOI, after the GST Council meeting in Guwahati.
Quoting sources, the report said the levy on carpets will be reduced to 5%, which is seen to be moderate tax and is expected to help revive the industry.
“While the proposal has been pending before the Centre for several weeks, a decision is only expected now. On Friday, the GST Council agreed to reduce the rates on over 200 items with 178 from the top bracket,” the report said.
The handicrafts manufactures in Kashmir have shown a concern and resentment against the levying of 12% GST on the carpet industry.
