GST Hike On Pashmina Shawls? What Omar Abdullah Said After Council Meeting

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed rumours of a potential GST hike on Pashmina shawls following the 55th GST Council meeting in Jaisalmer. Refuting media speculation, Abdullah clarified, “Contrary to media speculation and some ill-informed commentary, there was no proposal or discussion to increase GST on Pashmina shawls to 28%. We had gone to Jaisalmer fully prepared to defend the interests of our shawl weavers and handicrafts persons, but the defence was not necessary.”

The clarification has brought significant relief to the artisans and stakeholders of the Kashmiri shawl industry, which had been bracing for a potential tax increase from 12% to 28%. Such a hike, stakeholders argued, could have devastated the handicrafts sector.

The Kashmir Chamber of Commerce and Industries (KCCI) expressed gratitude to the government for not proceeding with the proposed tax change. The KCCI had previously raised concerns with Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Lieutenant Governor Manoj Sinha, and other officials, warning of the adverse impact on over 300,000 artisans whose livelihoods depend on the craft.

The chamber stressed that classifying Pashmina shawls under a higher tax bracket would have equated them to luxury goods or sin-taxed items, a move it deemed unjustifiable. “The proposed hike would have dealt a catastrophic blow to the Kashmiri shawl industry, especially the Pashmina sector,” the KCCI said.

Omar Abdullah reiterated his commitment to safeguarding the industry, noting the importance of protecting the cultural heritage and economic stability it provides.

The 55th meeting of the GST Council held in Jaisalmer, Rajasthan, chaired by Union Minister Nirmala Sitharaman. The meeting was attended by Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of several states, and other key officials.