GST cuts to help Uttarakhand's hill farmers, crafts, tourism and auto belt: PIB backgrounder
A PIB backgrounder of 21 October 2025 says GST cuts on items such as Pahari Toor Dal, red rice, Lakhori Mirchi, Aipan and Ringal crafts, hotel stays and small vehicles will support Uttarakhand's economy.
Summary
A PIB backgrounder of 21 October 2025 explains how GST rate cuts help Uttarakhand. GST falls from 12% to 5% on Pahari Toor Dal, grown in 13 hill districts under the traditional Barahnaja mixed cropping system; on red rice from Purola and Mori; and on GI-tagged Lakhori Mirchi from Almora. Aipan art of the Kumaon region, Ringal (dwarf bamboo) crafts and hand-knitted woollens also move to 5%. Tourism, which contributes 13.57% of the state's GSDP and supports about 80,000 people, gains from 5% GST on hotel tariffs up to ₹7,500. GST on small vehicles (up to 1200cc petrol and 1500cc diesel) falls from 28% to 18%, helping the Pantnagar–Rudrapur–Haridwar–Kashipur auto belt that employs about 50,000 people.
Key facts
- Farm produce (12%→5%)
- Pahari Toor Dal, red rice (Purola, Mori), Lakhori Mirchi (Almora, GI)
- Crafts (12%→5%)
- Aipan (Kumaon), Ringal bamboo, woollens
- Tourism
- 13.57% of GSDP; ~80,000 jobs; hotels ≤₹7,500 at 5%
- Vehicles
- 28% → 18% (≤1200cc petrol, ≤1500cc diesel)
- Auto belt
- Pantnagar, Rudrapur, Haridwar, Kashipur — ~50,000 jobs
- Cropping system
- Barahnaja mixed cropping
Practice MCQs 3 questions
The GI-tagged Lakhori Mirchi, mentioned in the October 2025 PIB backgrounder on GST cuts, comes from which district of Uttarakhand?
Show answer
Correct answer: D — Almora
PIB backgrounder: the GI-tagged Lakhori Mirchi from Almora is known for its distinctive aroma and flavour.
Pahari Toor Dal in Uttarakhand is traditionally cultivated as part of which mixed cropping system?
Show answer
Correct answer: A — Barahnaja
PIB backgrounder: Pahari Toor Dal is cultivated by small rain-fed farmers as part of the traditional Barahnaja mixed cropping system.
Consider the following statements based on the PIB backgrounder on GST cuts in Uttarakhand (October 2025): 1. Aipan is a traditional art form practised mainly in the Garhwal region. 2. GST on petrol vehicles up to 1200cc has been reduced from 28% to 18%. Which of the statements given above is/are correct?
Show answer
Correct answer: B — 2 only
Only 2 is correct. PIB backgrounder: Aipan is practised across the Kumaon region (Almora, Bageshwar, Nainital), not Garhwal; GST on vehicles up to 1200cc (petrol) and 1500cc (diesel) fell from 28% to 18%.