As per the recent announcement by the Government of India, certain handicraft items will be subject to concessional GST rates starting from 01.01.2022. This move is aimed at providing relief to small and medium-sized businesses involved in the handicraft sector and to promote the sector's growth.
The handicraft sector is one of the major contributors to India's economy, providing significant employment opportunities to rural and semi-urban areas. The concessional GST rates will further boost the sector's growth by reducing the tax burden on businesses.
The concessional GST rates will be applicable to the following handicraft items:
1. Bamboo furniture
2. Bamboo flooring
3. Handmade carpets and rugs
4. Handmade lace
5. Handmade quilts
6. Handmade curtains
7. Handmade bedspreads
8. Handmade table covers
9. Handmade kitchenware
10. Handmade toys
The concessional GST rate applicable to these items is 12%, which is lower than the standard rate of 18%.
The concessional GST rates will provide significant relief to small and medium-sized businesses involved in the handicraft sector. The reduced tax burden will lead to increased profits and improved cash flow, enabling businesses to invest in growth opportunities.
Furthermore, the concessional rates will make handicraft items more affordable for consumers, leading to increased demand and sales for businesses.
The concessional GST rates on specified handicraft items are a welcome move by the Government of India, aimed at providing relief to small and medium-sized businesses and promoting the growth of the handicraft sector. Businesses involved in the sector should take advantage of the reduced tax burden to invest in growth opportunities and improve their profitability. Consumers can also benefit from the reduced prices of handicraft items and support the growth of the sector.
Exemption from Reverse Charge to persons under GST Composition Scheme
Budget 2023: Date & Time, Expectations, Income Tax, Schemes
Healthcare Taxation under GST
