Govt May Consider GST Reduction On Handicrafts: Piyush Goyal

ENA Sectors 2025-07-07 15:14:26 New Delhi, Jul 7 (KNN) Commerce and Industry Minister Piyush Goyal announced that the government will consider industry requests to reduce the Goods and Services Tax (GST) on handicrafts from 12 per cent to 5 per cent. The Minister stated that the proposal will be forwarded to the Finance Ministry to provide relief to the handicrafts sector. Speaking at the Federation of Trade and Industry of India (FTII) Traders Conclave in Srinagar, Jammu and Kashmir, Goyal emphasised that India's handicrafts, handlooms, and agricultural products are positioned to access expanded markets as the country negotiates additional Free Trade Agreements (FTAs) with various nations. The Minister acknowledged requests from the Union Territory for establishing a new Centre of Excellence and a packaging unit incorporating advanced technologies. He referenced the diplomatic practice of presenting Kashmiri pashmina shawls, complete with Geographical Indication (GI) tags, to foreign dignitaries both domestically and internationally. Addressing concerns about import barriers for apples to protect domestic growers, Goyal explained the current pricing structure. He noted that imported apples arrive at costs of Rs 75-80 per kilogram due to a minimum import price of Rs 50, combined with 50 per cent import duty and additional cesses. After accounting for clearance, marketing, branding, transport, and distribution costs, retail prices reach Rs 125-150 per kilogram. The Minister emphasised that the government already provides substantial protection to apple growers but must balance farmer concerns with the needs of 140 crore consumers. He warned that excessive price increases could reduce demand for apples. Goyal highlighted that India's domestic apple production cannot meet national demand, necessitating imports of 4.5 to 5 lakh tonnes annually. The government has committed to encouraging exports of apples, cherries, walnuts, and strawberries from Jammu and Kashmir. Goyal indicated he will consult with Agriculture Minister Shivraj Singh Chouhan regarding potential increases to minimum import prices at ports and retail markets to benefit farmers. Additionally, the government plans to develop cold chain infrastructure to extend the shelf-life of agricultural products and promote export opportunities. (KNN Bureau) 42717 https://knnindia.co.in/news/newsdetails/sectors/govt-may-consider-gst-reduction-on-handicrafts-piyush-goyal 2025-07-07 15:14:26 knnindia.co.in Govt May Consider GST Reduction On Handicrafts: Piyush Goyal