BHUBANESHWAR: The state government has reiterated its demand for exemption of the Goods and Service Tax (GST) on handicraft items like goods, plates cups made from sal/siali leaves, and rope made from sabai grass.
Finance minister Shashi Bhusan Behera on Monday raised the demand in a letter to union finance minister Arun Jaitley. In the interest of tribal people engaged in eco-friendly economic activities, the plates and cups made from sal/ siali leaves should be exempted from GST in the next council meeting, Behera said, adding that these goods fell under the exempted category in the Odisha VAT Act. Besides, there was also no excise duty on these goods, he said.
However, 18 per cent tax has been imposed on these goods under the GST, said Shashi Bhusan Behera and maintained that tribals will be adversely affected by the high tax on these items which they sell in the local market.
Collecting sabai grass and making rope from it are major activities for the tribals who depend on these items for their livelihood, Shashi Bhusan Behera said. He also said the state government had exempted VAT and excise duty on these goods.
But sabai grass is taxable at five per cent GST while rope made from it has 18 per cent GST, Behera said, adding that the state government has already requested the GST Council to initiate the process putting these goods in the exempted category in the next council meeting.
Stating that he has already raised the issue of exemption of handicraft goods in the last GST council meeting, Behera said artisans dependent on these goods are poor and many of them are tribals.
Besides, these goods were also in the exempted category under the Odisha VAT Act but most of the items now attract 12 or 18 percent GST which will adversely affect the artisans, Shashi Bhusan Behera said.