Artisans express joy as GST hike on Pashmina shawls put on hold

Srinagar, Dec 24: Artisans in Kashmir especially associated with traditional craft of Pashmina shawl weaving, Sunday expressed a sigh of relief after the Goods and Services Tax (GST) hike on Pashmina shawls was not taken up during the 55th GST Council meeting held in Jaisalmer, Rajasthan.
The proposed hike could have raised the GST on Pashmina shawls to a daunting 28% had raised serious concerns across the industry, with many fearing that it would be devastating for local artisans and their centuries-old craft.
Artisans, who depend heavily on the sale of these handcrafted shawls for their livelihoods, had been anxiously awaiting the outcome of the meeting.
The prospect of a 28% tax on these fine wool products, often priced in the higher ranges due to the labor-intensive weaving process, could have made them unaffordable for many buyers, both locally and internationally.
Shazia Begum, a craftswoman from Pattan, told Rising Kashmir that the 28% tax on Pashmina shawls was terrifying.
“It would have been impossible to continue our work at those rates. Thankfully, the GST Council has understood the gravity of the situation. We can breathe a little easier now, but we remain vigilant for the future, she added.
“We were all preparing for the worst. If the GST hike had gone through, it would have meant the end of an era for Pashmina shawls in our area. We are relieved, but we know that we must stay united and ensure this never happens again,” Shazia said.
The Pashmina industry, which is not only a significant source of income for thousands of artisans in Kashmir region but also an integral part of the Valley’s cultural heritage, has faced increasing challenges in recent years.
Aftab Qureshi, a master shawl artisan from Baramulla said that Pashmina craft is not just our livelihood; it’s our identity. “The GST hike would have crushed us. But with the Chief Minister’s support, we now have hope. It is a small victory, but we have to keep pushing for the protection of our traditions and livelihoods,” he said.
Another Pashmina designer from Khanyar Srinagar said that the threat of a 28% tax was hanging over us like a dark cloud. “With this issue off the table, we are hopeful for the future, but we need to make sure that our voices continue to be heard in the halls of power.” This victory is just the beginning, he added.
Pashmina shawls, known for their warmth, softness, and intricate designs, are a prized possession across the world. However, their high cost, often driven by the extensive handcrafting process, means they are already a luxury item.
Jammu and Kashmir Chief Minister Omar Abdullah, who represented the region at the council meeting, had termed the proposed hike “life-threatening” for the Pashmina shawl industry, emphasizing the economic hardship it would impose on the region’s artisans.
In a post on X, he said that contrary to media speculation & some ill-informed commentary there was no proposal or discussion to increase VAT on Pashmina shawls to 28%.
“We had gone to Jaisalmer fully prepared to defend the interests of our shawl weavers & handicrafts persons but the defence was not necessary, ” he said.