Important Keyword: Notification No. 38/2017 Central Tax, handicrafts GST notification India, GST handicraft goods list amendment, CGST notification 38/2017 explained, handicraft GST exemption India, GST registration for artisans India,
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Table of Contents
[F. No.349/74/2017-GST(Pt.)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, the 13th October, 2017
Notification No. 38/2017 – Central Tax: Seeks to amend notification no. 32/2017-CT dated 15.09.2017 so as to add certain items to the list of "handicrafts goods."
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R. (E).— In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 32/2017- Central Tax, dated the 15th September, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1158(E), dated the 15th September, 2017, namely:-
In the said notification, in the Table –
- for serial number 9 and the entries relating thereto, the following shall be substituted, namely:-
| “9 | Textile (handloom products), Handmade shawls, stoles and scarves | Including 50, 58, 61, 62, 63”; |
- after serial number 28 and the entries relating thereto, the following shall be inserted, namely:-
| “29 | Chain stitch | Any chapter |
| 30 | Crewel, namda, gabba | Any chapter |
| 31 | Wicker willow products | Any chapter |
| 32 | Toran | Any chapter |
| 33 | Articles made of shola | Any chapter”. |
(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India
Note: - The principal notification No.32/2017-Central Tax, dated the 15th September, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1158 (E), dated the 15th September, 2017.
📚 Frequently Asked Questions (FAQs): Notification No. 38/2017 – Central Tax
Q1: What is Notification No. 38/2017 – Central Tax?
Answer:
Notification No. 38/2017 – Central Tax amended Notification No. 32/2017 – Central Tax and added additional items to the list of handicrafts goods under GST.
This was issued under Section 23(2) of the CGST Act, 2017.
Q2: Why was Notification No. 38/2017 issued?
Answer:
The government issued this notification to expand the official list of handicraft goods, ensuring that more artisans and traditional products receive GST benefits.
Q3: What items were added to the handicrafts goods list?
Answer:
The notification added:
Chain stitch
Crewel
Namda
Gabba
Wicker willow products
Toran
Articles made of shola
These items represent traditional Indian handicraft products.
Q4: What is the purpose of classifying goods as handicrafts?
Answer:
Classifying goods as handicrafts allows certain GST registration exemptions for artisans, particularly when making inter-state supplies.
Q5: Which section of the CGST Act allowed this amendment?
Answer:
The notification was issued under Section 23(2) of the CGST Act, which allows the government to exempt certain persons from GST registration.
Q6: What was the earlier notification amended by this notification?
Answer:
Notification No. 38/2017 amended Notification No. 32/2017 – Central Tax dated 15 September 2017.
Q7: Do handicraft sellers always need GST registration?
Answer:
Not always.
Handicraft sellers making inter-state supplies may not require GST registration if turnover is below threshold limits, as specified in relevant notifications.
However, businesses should verify eligibility carefully.
Q8: Can handicraft businesses claim input tax credit?
Answer:
Yes.
If registered under GST, handicraft businesses can claim input tax credit on purchases used for business activities.
Q9: Are handmade shawls considered handicrafts?
Answer:
Yes.
Under the amended notification, handmade shawls, stoles, and scarves produced using handloom techniques are considered handicrafts.
Q10: Can handicraft exporters benefit from GST refunds?
Answer:
Yes.
Exporters can claim GST refunds on input tax credit for export supplies.
To manage refund claims properly, consult Finodha GST Compliance experts:
https://finodha.in/gst-compliance/
Q11: Is GST registration required for online handicraft sellers?
Answer:
Often yes.
If handicraft products are sold through e-commerce platforms, GST registration may be required regardless of turnover.
Q12: Can artisans register as MSMEs?
Answer:
Yes.
Many handicraft businesses qualify as MSME enterprises.
Register easily through Finodha MSME / Udyam Registration services:
https://finodha.in/online-udyam-udyog-aadhar-msme-registration/
Q13: What documents are needed for GST registration?
Answer:
Typical documents include:
PAN card
Aadhaar
Business address proof
Bank details
Business registration documents
You can apply through Finodha GST Registration services.
Q14: Can handicraft businesses operate as private limited companies?
Answer:
Yes.
Handicraft businesses can operate as:
Proprietorship
Partnership
Private limited company
To register a company, explore Finodha Private Limited Company services:
https://finodha.in/private-limited-company/
Q15: Where can handicraft businesses get GST compliance help?
Answer:
GST compliance can be challenging for artisans and small businesses.
Professional experts can assist with:
GST registration
Return filing
Compliance management
👉 Consult Finodha GST Compliance services today:
https://finodha.in/gst-compliance/
Conclusion
Notification No. 38/2017 – Central Tax played an important role in expanding the official list of handicrafts goods under GST, helping traditional artisans and small businesses receive recognition and compliance benefits.
By adding items such as chain stitch, crewel products, wicker willow goods, toran, and shola crafts, the government strengthened support for India’s handicraft industry and rural artisans.
Download PDF: Notification No. 38/2017 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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