**Summary:**
This document summarizes the Indian government's response to Lok Sabha Starred Question No. 212, posed on August 4, 2025, regarding the reduction of Goods and Services Tax (GST) on handloom and handicraft products, specifically pashmina shawls and silk carpets, and the potential abolition of the 5% GST on packaged rice and bran (up to 25 kg).
The response, provided by the Minister of Finance, Nirmala Sitharaman, indicates that GST rates are determined based on the recommendations of the GST Council, a constitutional body with representatives from States/Union Territories and the Centre.
The GST Council, in its 45th meeting on September 17, 2021, established a Group of Ministers (GoM) on GST Rate Rationalisation. The GoM's mandate includes reviewing the current GST rate structure and proposing rationalization measures. Any changes to GST rates on handloom/handicraft products or packaged rice/bran will stem from the GST Council's recommendations, as per Article 279A of the Constitution of India.
Key Entities Referenced
Nirmala Sitharaman: The current Minister of Finance of India.
Goods and Services Tax: A value-added tax levied on most goods and services sold for domestic consumption.
Handloom: A loom operated manually, used for weaving fabrics.
Handicraft: Objects made by hand, often traditional or artistic.
Lok Sabha: The lower house of the Parliament of India.
Ministry of Finance: A ministry within the Government of India responsible for the country's finances.
GST Council: A constitutional body in India responsible for making recommendations on GST rates.
Constitution of India: The supreme law of India.
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.
*****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.
(c) 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.
(d) 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.
*****