MLC demands withdrawal of 5% GST on handloom and handicraft products

HYDERABAD

Bharat Rashtra Samithi (BRS) MLC L. Ramana has demanded that the Centre withdraw the 5% GST on handlooms and handicrafts to help weavers and artisans, who have been bearing the brunt of the tax since 2017.

In a letter addressed to Union Finance Minister and GST Council Chairperson Nirmala Sitharaman on Thursday, Mr. Ramana stated that the prices of handloom products have gone up due to the 5% GST on yarn, resulting in weavers losing customers. He pointed out that cotton is taxed at 5%, while yarn attracts 12%, and synthetic fibres and chemicals are taxed at 18%.

Due to increased production costs, handloom weavers are unable to compete with powerloom weavers and mills. He noted that the GST filing process is complicated and financially burdensome for traditional weavers.

In another letter addressed to Chief Minister A. Revanth Reddy, the MLC demanded that the State government bear the GST burden, recalling Congress leader and Leader of Opposition in the Lok Sabha Rahul Gandhi’s poll promise to do so.

He observed that weavers who are losing money due to GST are being forced to abandon their traditional profession and migrate to other places for livelihood.