Artisans in Mysuru are keeping their fingers crossed on the full impact of the revision in the Goods and Services Tax (GST) rates on 18 handicraft products announced recently by the GST Council. But the members of the Handicrafts Manufacturers’ Association in Mysuru are convinced that the GST rates on wooden products are high despite the recent revision, and could deal a big blow to the craft, especially the inlay works unique to Mysuru region.
Sales of the inlay product, which has a Geographic Indication (GI) tag, has taken a hit, say the craftsmen.
“Sales are down by 70% and for an industry struggling to cope with the shortage of skilled labour, GST has come as the proverbial nail in the coffin,” said K. Ramu, an award winning artisan specialising in inlay works and an office-bearer of the Mysore Handicrafts Manufacturers’ Association.
“Inlay work is done on tables and it draws a 28% GST as these products are clubbed with furniture,” said Mr. Ramu. Earlier, there was a 5.5% VAT on the product, besides sales tax, all of which amounted to nearly 14%. But with GST, the tax outgo has doubled and sales have dwindled.
However, Shashidhar, in charge of the Handicrafts Marketing and Service Extension Centre, a government undertaking, said more than 85% of the inlay works are decorative wall panels and does not draw 28% GST.
“Only a few well-established firms in the organised sector, engaged in exports of inlay works on table have been affected by the GST. But a majority of the artisans work in the unorganised sector, and create wall panels and the GST impact will be minimal on them,” he added. However, carvings, including making of mantapas come under the 18% GST. A meeting will be convened in due course with the GST Council members and their representatives in Karnataka, with the artisans, to discuss their demands, said Mr. Shashidhar.
History
Wood inlay works as an art form had a Persian origin and was patronised by Hyder Ali and Tipu Sultan in Srirangapatana and later by the Mysuru maharajas.
The craft received a boost when Chamarajendra Technical Institute began experimenting with new motifs during the early 20th century and they became popular among consumers and created demand. Though ivory used to be inlaid in the incisions on the wood till recent decades, it was substituted with Shivany and other light-coloured wood after the ban on ivory came into force.
