Handicraft business down 40% post GST: Exporters

Jaipur: The government has ignored the handicraft sector under the GST regime, resulting in a decline of 40% in its business since July 1.

The recently held national handicraft exhibition, which was attended by 100 small and big companies, saw its revenue falling by 40% as compared to previous year, said Dileep Baid, president, Federation of Rajasthan Handicraft Exporters (FORHEX).

The handicraft business, which employs 70 lakh people in the country, was not considered by financial experts under the GST regime and as a result artisans have to pay GST on marble, granite, wood, and other materials used in their business, Baid said.

Due to GST on other materials, the handicraft business community has to pay tax between 12% and 28% as against 5% VAT on items costing more than Rs 1,000, he said. OC