How GST cuts help J&K: Pashmina, Basohli paintings, almonds and tourism move to 5%
On 3 October 2025, a government explainer said GST cuts from 12% to 5% would make Jammu and Kashmir's handicrafts, almonds, walnuts and hotel stays more competitive.
Summary
On 3 October 2025, a government explainer on GST reforms in Jammu and Kashmir said cuts from 12% to 5% would make the UT's handicrafts, farm produce and tourism more competitive. GI-tagged Pashmina shawls, woven by nearly 5,000 weavers in Kanihama and elsewhere in the Valley, now carry 5% GST. So do GI-tagged Basohli paintings from Kathua district, made by about 500 artists. Wicker willow crafts and walnut-wood crafts also moved to 5%. J&K produces over 91% of India's almonds, and almond packaging moved from 12% to 5%. Kashmiri walnuts, traded at about ₹120 crore a year, also got the cut. GST on hotel stays up to ₹7,500 fell from 12% to 5%; tourism supports over 70,000 jobs, and tourist arrivals rose from 2.1 crore in 2023 to 2.3 crore in 2024.
Key facts
- Rate
- 12% → 5% on handicrafts, almonds/walnuts, hotel stays up to ₹7,500
- GI crafts
- Pashmina (~5,000 weavers, Kanihama); Basohli painting (Kathua, ~500 artists)
- Almonds
- J&K >91% of India's output
- Tourism
- 70,000+ jobs; arrivals 2.1 cr (2023) → 2.3 cr (2024)
Practice MCQs 2 questions
According to the government's October 2025 explainer, Jammu and Kashmir accounts for more than what share of India's almond production?
Show answer
Correct answer: D — 91%
PIB explainer: J&K accounts for more than 91% of India's almond production; the Kashmiri almond packaging industry benefits from a GST cut from 12% to 5%.
The GI-tagged Basohli painting, described as 'poems in colours', is produced mainly in which district of Jammu and Kashmir?
Show answer
Correct answer: A — Kathua
PIB explainer: GI-tagged Basohli Painting, produced mainly in Basohli of Kathua district, employs nearly 500 local artists and is often described as 'poems in colours'; its GST fell from 12% to 5%.