In response to a parliamentary question from Dr. Ganapathy Rajkumar P, the Ministry of Finance addressed the possibility of reducing GST on handloom, handicraft products, rice, and bran. The question specifically inquired about making products like pashmina shawls and silk carpets more affordable, as well as abolishing the 5% GST on packaged rice and bran up to 25 kg.
In response to a parliamentary question from Dr. Ganapathy Rajkumar P, the Ministry of Finance addressed the possibility of reducing GST on handloom, handicraft products, rice, and bran. The question specifically inquired about making products like pashmina shawls and silk carpets more affordable, as well as abolishing the 5% GST on packaged rice and bran up to 25 kg. In a written statement to the Lok Sabha on August 4, 2025, Minister of Finance Nirmala Sitharaman stated that GST rates are determined by the GST Council, a constitutional body composed of members from both the Union and State governments. The Minister's response noted that a Group of Ministers (GoM) on GST Rate Rationalisation was formed by the Council in September 2021 to review the existing GST rate structure and recommend changes. The government's position is that any decision on these matters would be based on the recommendations of this council.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
STARRED QUESTION NO. *212
TO BE ANSWERED ON MONDAY, AUGUST 04, 2025/SRAVANA 13, 1947(SAKA)
REDUCTION OF GST ON HANDLOOM & HANDICRAFT PRODUCTS
*212. DR. GANAPATHY RAJKUMAR P:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government proposes to reduce GST on handloom and handicraft products aimed at making pashmina shawls and silk carpets more affordable for buyers in the Indian market;
(b) if so, the details thereof;
(c) the decision taken or proposed to be taken by the Government in this regard;
(d) whether the Government is likely to take similar measures to abolish of 5 per cent GST imposed on rice and bran packaged up to 25 kg for the benefit of poor people and farmers; and
(e) if so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF FINANCE
SHRIMATI NIRMALA SITHARAMAN
(a), (b), (c), (d) & (e): A statement is placed on the Table of the House.
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STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 212 RAISED BY SHRI DR. GANAPATHY RAJKUMAR P FOR 4TH AUGUST, 2025 ON REDUCTION OF GST ON HANDLOOM AND HANDICRAFT PRODUCTS
(a) and (b): GST rates are prescribed on the recommendations of GST Council, which is a constitutional body comprising members from States/UTs and Centre. The GST Council in its 45th meeting held on 17th September, 2021, has constituted a Group of Ministers (GoM) on GST Rate Rationalisation. The terms of reference of the GoM include review of the current rate slab structure of GST and recommend rationalization measures.
(b) In terms of Article 279A of the Constitution of India, the GST Council recommends the GST rates to be applied on supply of goods and services and the Union government and the State governments implement such recommendations of the GST Council.
(c) and (e): GST rates are prescribed on the recommendations of GST Council, which is a constitutional body comprising members from States/UTs and Centre. The GST Council in its 45th meeting held on 17th September, 2021, has constituted a Group of Ministers (GoM) on GST Rate Rationalisation. The terms of reference of the GoM include review of the current rate slab structure of GST and recommend rationalization measures.
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