Bhubaneswar: Goods & Services Tax(GST) rate on Sabai ropes and cups and plates stitched from Sal/ Soali leaves has been reduced from 18% to 5%, while the tax rates on idols of clay which was 28%, has been exempted from tax, said Sri Shashi Bhusan Behera Minister, Finance here. Sri Behera said that Khadi fabric, sold through Khadi and Village Industries Commission(KVIC) and KVIC certified institutions/ outlets have also been exempted from tax.
Tax rate on idols of stone has been reduced from 28% to 12%.The tax rates on different handicraft goods were 28%, 18% or 12% under GST. The tax rate on idols made of clay & stone was 28% where as tax rate on Sabai ropes and cups, plates stitched with Sal and Siali leaves was 18%.
Minister Sri Behera said that Odisha had been demanding to exempt tax from the handicraft and handloom goods. In this regard, Chief Minister of Odisha Sri Naveen Patnaik had written a letter to the Prime Minister to exempt handicrafts and handloom goods from GST. He himself had also written a letter to Union Finance Minister to exempt handicraft and other goods under GST. He had also put forth arguments in favour of exempting these goods in the meetings of the GST Council, since the livelihood of the tribal and poor artisans depend on these goods.
The demand of Odisha was discussed in the 21st meeting of the GST Council held in Hyderabad. Considering the demands of Odisha, the GST Council reduced the tax rate on other handicraft goods from 18% to 12%. In this way, the demand of the state has been accepted by the GST Council.