GST Reforms: How Chhattisgarh's Handloom and Handicraft Sectors Will Thrive

Lower taxes are reducing input costs, stimulating consumer demand, and making local products more competitive in national and global markets, an official statement said.

The 5 per cent GST rate on key sectors will ease the burden on small producers and encourage formalisation and rural entrepreneurship, aligning with the state's developmental priorities and inclusive growth vision, the release said.

The GST reforms are expected to benefit approximately 1.5 lakh handloom weavers, many of whom are women engaged in decentralised rural production in districts such as Janjgir-Champa, Raigarh, Raipur, Mahasamund, Bastar and Sarguja.

The government data indicated that the cuts may increase demand for handicrafts by 10-15 per cent and create approximately 5,000 jobs by 2026.

The reduction of GST on cement from 28 per cent to 18 per cent makes cement more affordable, lowering construction costs, stimulating housing demand, and generating additional employment opportunities in the infrastructure sector, impacting approximately 20,000 to 30,000 jobs.

The reforms will also benefit 50,000-60,000 artisans engaged in handicrafts across Chhattisgarh, with tribal and forest-based crafts accounting for nearly 70-80 per cent of them.

Further, the reforms are a relief for MSMEs in the powerloom sector, as they ease the input tax burden, correct inverted duties, support working capital, and encourage formalisation.

The GST reduction from 12 per cent to 5 per cent provides a major boost to the metal handicraft sector by lowering production costs, improving sales, and supporting exports.

The reform offers financial relief to tribal artisans, helping make their craft economically viable again while preserving traditional skills that were under strain from higher tax slabs, the release said.

- IANS