For Ravi, an artisan who makes wooden handicrafts near Perur, there is much to worry about. So far, handicrafts were exempted from taxes. But, it is 12 % under Goods and Services Tax (GST). His annual turnover is just about ₹ 3 lakh to ₹ 4 lakh and so, he need not go in for GST registration. However, the raw materials that he purchases for his work, including wood, attract GST.
“There are just about 10 of us in the city who do wooden handicrafts. I do not know how I should go about for GST. I did not take part in any of the exhibitions in the last one month because of this. Even if I am not covered under GST, those who purchase from me will sell to consumers adding the GST. I think this will have an impact on sales,” he says.
Saravana Kumar is known in the city for the Kolu dolls that he sells during Navarathri season. He gets customers from other States too. He has an outlet and also supplies to Poompuhar and Sarvodaya. “The paint rate is up by nearly ₹ 30 a litre because of GST,” he says. Though his annual sales was less than ₹ 20 lakh, this year he was hoping to do more. But, he feels the GST might hit sales.
“Those who want to buy dolls for ₹ 500 will go in for a few dolls compared to the previous year as the prices are up because of GST,” he says.
The government organisations that buy from him will levy GST and this will reflect on prices, he says.
For artisans such as Saravana Kumar and Ravi, GST is expected to affect sales during the festival season this year. They hope the government-owned organisations such as Poompuhar would take up their cause with the Central Government.
For the last three weeks, Poompuhar has been billing purchases with the GST rates. A Thanjavur painting that used to cost ₹ 7,200 a piece is now ₹ 8,080, says an official.
Poompuhar has very few luxury items in its collection. Most of the products it sells attract 5% or 12 % GST. Even the discount that is offered usually will not benefit the customers much, the official adds.
