The handicraft export business of Jodhpur has declined nearly 40 percent and business worth Rs 700 crore has been reduced since the implementation of GST.
Handicraft exporters are in crisis. Due to GST, handicraft items of Jodhpur have become expensive in the international market and their demand has decreased. The handicraft export business of Jodhpur has declined nearly 40 percent and business worth Rs 700 crore has been reduced since the implementation of GST.
Before GST, where 150-180 million exports of handicrafts from Jodhpur were going on every month, right now it has come down to 75 to 90 million per month. The provision of GST from 12 to 28 percent on handicraft furniture has hit exporters and foreign customers are now heading towards China, Vietnam and Indonesia.
Nirmal Bhandari, Chief patron of Jodhpur Handicrafts Exporters Federation said that the government has imposed five percent GST on brass handicrafts of Moradabad, while the 28 percent GST was recovered from Jodhpur handicraft till November and now 18 percent in December, due to which, demand has started decreasing in overseas countries. While there is no GST refund yet and it is becoming very difficult for the exporters to work. Not only this, even crores of rupees of VAT have not been refunded. Now, the situation has reached in such condition that the exporters have started refusing the order.
According to exporters, orders were taken from buyers from UK, Europe and USA in April for Christmas season. The orders have been supplied in August, September, October and mid-November, but exporters had to supply this order at 28 per cent loss, because the government has implemented GST in July. So far, the handicraft industry was completely tax free, but now 18 per cent tax has been levied. The order that has been supplied will be paid by the buyers 120 days after the shipment arrives. In such a situation, exporters are unable to understand how to compensate for the 28 per cent loss from the previous supply.
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