GST Council may provide releif for handicrafts

New Delhi Jan 10: The GST Council may announce relief for handicrafts items in the upcoming meeting which will be held on Jan 18. earlier the GST Council has formed a committee to recommend the changes and the panel has submitted its report and this would be discussed next week.

The committee has suggested the following changes which include the redefining the nomenclature of the handicrafts. The Committee has suggested the following definition as per the guidelines announced by the supreme court as "goods predominantly made by hand even though some tools or machinery may also have been used in the process."

"Goods graced with visual appeal in the nature of ornamentation or in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility " would also be considered as Handicrafts.

# The tax rates on job works for preparing these goods may also be reduced to 5 %.

Handicrafts may include products such as handmade paper, handmade envelopes, letter cards, postcards, handmade boxes, pouches and wallets, handmade agarbattis, handmade fabric have been recommended for inclusion as handicraft items by the pane.

However, no exemption has been given for sarees and dresses. Finally, the Government hopes that the recommendations would reduce the litigation and would give a boost to handicrafts which are majorly exported.