Govt’s Surprise for Handicraft Sector: GST Council Reduces Rates on Different Handicraft Items
The list extends to niche categories such as worked ivory, bone, tortoise shell, coral, mother of pearl, seashell, lac and shellac articles, handmade paper and paperboard, and collectors’ items like zoological or historical specimens and antiques over 100 years old.
Handcraft sectors - Taxscan
Handcraft sectors - Taxscan
The 56th GST Council has reduced the rates of different handicraft items to 5%. This is a surprise for the handicraft sector by the government. The government has reduced the rates to promote the traditional handicraft industry and the artisans.
The rate cuts cover a diverse list of traditional and decorative products made from wood, stone, metals, glass, ceramics, textiles, bamboo, cane, and other natural materials. Items such as idols, statues, figurines, bowls, vases, paperweights, jewellery boxes, carved wood products, decorative articles, and handcrafted candles are now taxed at a lower rate. Importantly, handbags, pouches, purses, and ornamental wooden and stone products are also included in the list.
The art forms rooted in India’s cultural heritage will also benefit. Products like Mysore paintings, Tanjore paintings, Rajasthan paintings, palm-leaf paintings, hand-painted shawls, terracotta ware, inlaid stone work, brass and copper artware, bamboo and cane furniture, Channapatna toys, Thanjavur dolls, and handcrafted lamps have all seen their tax burden reduced. This will directly help artisans sustain traditional crafts while making them more competitive in both domestic and global markets.
The list also extends to niche categories such as worked ivory, bone, tortoise shell, coral, mother of pearl, seashell, lac and shellac articles, handmade paper and paperboard, and collectors’ items like zoological or historical specimens and antiques over 100 years old.
These price reductions will make handcrafted goods more affordable, enticing customers to choose locally produced, sustainable, and genuine goods over less expensive mass-manufactured substitutes.
The 12% GST on almost all handmade items has been lowered to 5% as a result of these changes. In addition to promoting "Make in India," the Council said the decision protects India's rich cultural legacy and sustains livelihoods in rural and semi-urban areas, which are home to traditional craft clusters.
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