Jaisalmer (Rajasthan) [India]: Jammu and Kashmir Chief Minister Omar Abdullah clarified that the Goods and Services Tax (GST) Council did not take up the proposal to increase the GST on Kashmiri Shawls during its 55th meeting.
The meeting, held in Jaisalmer, Rajasthan, on Saturday, was chaired by Finance Minister Nirmala Sitharaman. CM Abdullah addressed reporters after the session, emphasizing that the speculation around a GST hike on Kashmiri shawls, particularly Pashmina shawls, was unfounded.
“Some things were agreed on, some things were deferred. There had been a lot of speculation that GST on shawls, particularly Pashmina shawls, will be hiked, so we had come prepared to ensure that wouldn’t happen,” he said.
The Chief Minister highlighted the potential damage any increase in GST would cause to the Pashmina shawl industry, a cornerstone of Jammu and Kashmir’s economy and culture. “Thankfully, it wasn’t taken up, and we will also ensure that in the future, something like this is not considered because it would be life-threatening to our Pashmina shawl industry,” CM Abdullah added.
Earlier, Peoples Democratic Party (PDP) leader Mehbooba Mufti had urged Omar Abdullah to clarify his stance on the proposed GST hike. Speaking passionately about the issue, she stated, “Today, when you increase GST by 28% in the capital of Kashmir, our art will automatically end. Efforts are being made to destroy it by imposing GST on shawls and handicrafts, alongside development on horticulture land. Both these things kept Jammu and Kashmir alive in difficult times.”
The PDP chief expressed hope that the National Conference (NC) government would address the artisans’ concerns. “I request Omar Sahab, what are you doing to save it? What are you doing on the matter of increasing GST by 28%? I hope that Omar Sahab will pay attention to this and solve the problems of the people,” Mufti said.
The clarification from CM Omar Abdullah brings relief to artisans and stakeholders in the Kashmiri shawl industry, who feared adverse impacts from any potential tax hike.