Srinagar: The Kashmir Chamber of Commerce and Industry (KCC&I) has hailed the decisions taken at Wednesday’s GST Council meeting, particularly the reduction in tax rates on handicrafts, hotel rooms, and common-use items, describing them as a major relief for Kashmir’s economy.
KCC&I President Javid Ahmad Tenga said the move was the outcome of sustained advocacy by the Chamber. “This is indeed a landmark decision and a matter of great relief for us. The Chamber has consistently pressed for a reduction of GST on handicrafts and other essential items, as higher taxation was proving detrimental to our economy,” he said.
Tenga recalled that the Chamber had raised the issue with Union Commerce and Industry Minister Piyush Goyal during a meeting at SKICC in July, and later submitted a detailed representation to Union Finance Minister Nirmala Sitharaman. “Yesterday’s approval by the GST Council is the fulfilment of a long-pending demand we pursued with sincerity and persistence,” he added.
Highlighting the sector’s importance, the KCC&I president said handicrafts in Kashmir employ 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 national and international markets. This decision safeguards our cultural heritage while providing livelihood security to thousands of families,” Tenga said, expressing hope that the sector would regain momentum and contribute to the wider economy of J&K.
The Chamber also welcomed the cut in GST on hotel rooms priced up to ₹7,500, where rates have been lowered from 12% with input tax credit to 5% without ITC, effective September 22. It said budget and mid-segment tourists would benefit the most from this measure.
KCC&I noted that the simplification of GST slabs from four (5%, 12%, 18% and 28%) to two (5% and 18%), with a special 40% rate for luxury items like high-end cars, tobacco, and cigarettes, would streamline compliance and taxation.
The Chamber further said rate cuts on everyday items like hair oil, cornflakes, televisions, and health and life insurance would ease household expenses and spur domestic demand, offsetting the impact of global economic pressures.
KCC&I expressed hope that the measures announced by the GST Council would provide much-needed relief to both businesses and consumers, strengthening Jammu and Kashmir’s economy at a time of economic stress.
