GST rate cut boosts agriculture, tourism, industry in Uttarakhand
The recent GST rate rationalisation has given a major boost to Uttarakhand’s economy, cutting taxes across agriculture, tourism, crafts, and manufacturing to strengthen livelihoods, attract investment, and enhance competitiveness across hill and industrial regions.
Dehradun, October 21: The recent GST rate rationalisation has given a major boost to Uttarakhand’s economy, cutting taxes across agriculture, tourism, crafts, and manufacturing to strengthen livelihoods, attract investment, and enhance competitiveness across hill and industrial regions, the government said on Tuesday.
Key highlights:
- Hill produce relief: GST reduced to 5% on Pahari Toor Dal, Red Rice, and Lakhori Mirchi, supporting small farmers across 13 hill districts.
- Tourism push: GST on hotel tariffs up to ₹7,500 lowered from 12% to 5%, benefitting around 80,000 people in destinations like Nainital, Mussoorie, and Rishikesh.
- Crafts and cottage industries: Aipan art, Ringal bamboo, and woollen products now taxed at 5%, reviving women-led ventures and GI-tagged crafts.
- Industry boost: GST cut from 28% to 18% on small vehicles is expected to make automobiles 8–10% cheaper, supporting nearly 50,000 jobs.
- Food processing and MedTech: Tax reductions to 5% expected to improve margins for 383 food units and lower production costs in the Medical Device Park, employing over 4,000 people.
The reforms are designed to promote sustainable livelihoods, green entrepreneurship, and MSME growth, bridging the gap between the mountain and the market. The initiative aligns with Uttarakhand’s broader vision of inclusive, sustainable, and self-reliant development, it added.
