GST Hits Handicraft Market

Handicraft Market at Surajkund

Here is how GST hits Handicraft Industry a big time..

  •  Imposing 18% tax on raw materials used in handicraft industries with an extra 9% on the ultimate product is throwing it out of competition in the markets already dominated by numerous brands.
  • Chikankari & Zari Artisans of Lucknow (Uttar Pradesh) are forced to drive rickshaw in order to earn their living as their wages are cut to a meagre amount.

Zari Artist Driving e-Rickshaw

  • Promotion of Indian craft industry by government sounds like nothing but a rhetoric now, because Handicraft sector was chiefly exempted from taxes earlier but hit the most by GST.
  • Rural Craftsmen and Artists who were ready to showcase their products online are in tizzy cause either they can use their skills to produce the handmade goods or learn the complexities of numerous filing per month as required in GST.

Artist Showing His Weaving Skills

  • Compliance cost born by those Artisans who have registered themselves into GST is yet another factor that is adding up to the final cost of produce.
  • If “Digital India” & “Make In India” seem to make any sense, it is only for handful of companies now.

GST Is Poised To Make Things Difficult For Artists.

  • There is 5% GST on all yarns & another 5% on finished products. Also, services of Hand-loom like warping & twisting there is another 18% tax. This will effect the whole handloom industry which already have a tough competition with power-loom.
  • GST will paralyze the industry & kill the sector. This is mostly because it’s a decentralized occupation & because of lack of education, empowerment of Craftsmen/Artist is at stake.

Jute Seller At An Exhibition

  • Overpricing of Indian Handmade goods made by Artisans will put them out of competitive market & restrict them from showcasing their products on internet & local market.
  • Since Handicraft sector in India is highly disorganized, current structure of GST has to be reviewed in the wake of the predicament of artisan’s livelihood & advancement of cultural crafts.

Handicraft Industry Is Struggling To Make A Mark

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2 Responses

  1. putul jahan says:

    Nice post

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