K'taka CM seeks GST exemption on handmade products

Karnataka Chief Minister Siddaramaiah urged the central government to exempt handmade products from the ambit of the Goods and Sales Tax (GST).

In a letter addressed to Finance Minister Arun Jaitley, the chief minister said the move would benefit a large segment of the state's rural population, and give a boost to rural employment and sustainability.

The letter follows a representation that was submitted to Siddaramaiah from a committee constituted by Gram Seva Sangh, consisting of noted activists including Ashis Needy, Uzramma and Shyam Benegal.

"A detailed representation regarding exempting handmade products produced and marketed by the producer co-operative societies and their federations from GST, including a definition of what constitute handmade products and raising the exemption of registration turnover limit of individuals and self-help groups producing handmade products to Rs.50 lakhs is attached to this letter. It includes a large set of products ranging from handmade butter to paper," the letter read.

The chief minister noted that imposition of the GST on such products has had an adverse effect on the livelihood of artisans engaged in producing these, and therefore added that the representation requires urgent consideration and a positive resolution.

"This would not only benefit a large segment of our rural population but would also give a boost to rural employment and sustainability. I, therefore, urge you to take this issue on priority basis in the next GST Council meeting and decide favourably benefitting a large segment of rural artisans," he said.

Siddaramaiah further assured the finance minister of complete support from his government on the same.