Srinagar, Sept 05: The Kashmir Trade Alliance (KTA) has welcomed the major reforms announced by the GST Council, terming them a landmark step that will ease compliance, reduce tax burden, and give a much-needed boost to the trade and tourism-driven economy of Jammu and Kashmir.
According to a statement issued here, KTA President Aijaz Shahdhar, while reacting to the development, said the decision to simplify the GST structure by reducing the slabs from four to two would bring wide-ranging relief for traders, shopkeepers, and small and medium enterprises.
“The earlier multi-slab system was complicated and burdensome, creating confusion, disputes and unnecessary paperwork. Moving from four slabs to two slabs will not only make compliance easier but will also help stabilise consumer prices, improve transparency, and give traders breathing space to focus on their businesses,” Shahdhar said.
He stressed that the reforms would have an overall positive impact across sectors. “Simplification of the GST regime is not just a matter of taxation — it will benefit the entire economy of J&K. From small shopkeepers to manufacturers, from hoteliers to artisans, everyone will feel the difference. A simpler tax structure means more efficiency, less harassment, and greater confidence in doing business,” Shahdhar added.
Welcoming the reduction of GST on hotel tariffs up to ₹7,500 from 12% to 5%, the KTA President said this would directly support Kashmir’s tourism industry. “Affordable accommodation will attract more visitors, strengthen the Valley’s image as a competitive tourist destination, and create a multiplier effect across the economy. Every tourist sustains transporters, shopkeepers, artisans, and local service providers. This step will go a long way in reviving tourism, which is one of the largest employment generators in Jammu and Kashmir,” he noted.
On handicrafts, Shahdhar hailed the cut in GST from 12% to 5% but reiterated that a complete waiver is essential. “Our handicrafts are not just economic goods; they represent Kashmir’s culture and identity. Thousands of artisans depend on this sector for their livelihood. A full exemption from GST will not only protect our artisans but also make Kashmiri products more competitive in domestic and international markets,” he said.
Shahdhar further emphasised that rationalisation of taxes will help stabilise consumer markets.
