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Key Points

The Indian government has introduced significant GST rate reductions across multiple sectors to stimulate economic growth. These changes primarily target mining, construction, and household goods, promising benefits for small enterprises and consumers. The new rates aim to make essential items more affordable and support local industries. By reducing tax rates on items like marble, granite, and handicrafts, the government hopes to boost demand and promote domestic manufacturing.

Key Points: GST 2.0 Boosts Housing and MSME Sectors Nationwide

  • Marble and granite GST reduced from 12% to 5% benefiting housing sector
  • Sand lime bricks tax cut to support rural construction
  • Aluminum and copper utensils now cheaper for households
  • Handicraft goods tax reduction to support artisan communities
3 min read

GST 2.0 to boost housing, small enterprises in mining sector: Govt

Government unveils new GST rates cutting taxes on mining, construction, and household items to support small enterprises and reduce consumer costs.

"Lower GST rates will help in promoting Indian culture and 'Make in India' - Ministry of Mines Statement"

New Delhi, Sep 11

The GST 2.0 rates and slabs for items related to the mining sector will have a positive impact on the housing industry and small-scale enterprises, according to a statement issued by the Ministry of Mines on Thursday.

Under the new rates, marble and travertine blocks and granite blocks will now attract a GST of 5 per cent compared to the earlier rate of 12 per cent. This reduction in GST rates will benefit the housing sector as marble and granite are used largely in the housing industry. Granite and marble are being mined in states like Rajasthan, Gujarat and Karnataka.

In addition to this, the reduction of GST rates on sand lime bricks or stone inlay work will help lower the construction cost of low-cost housing, especially in rural areas. The GST rates of such items are also being brought down to 5 per cent from 12 per cent.

GST rates of milk cans made of aluminium; table, kitchen or other household articles of copper as well as aluminium will also see GST rate reduced from 12 per cent to 5 per cent. Since such utensils, milk cans and household articles made of aluminium and copper are everyday essentials, the reduction in GST rate will increase demand due to reduced retail price.

This will also enable households to save money on essential utensils and enjoy healthier and more durable alternatives to plastic. MSMEs engaged in production of such utensils will also benefit from higher demand and wider markets for such products, the statement pointed out.

Further, GST rates on brass kerosene pressure stoves have been reduced from 12 per cent to 5 per cent. This reduction will support rural and low-income families by making the basic cooking tools cheaper, thereby ensuring energy access for all.

GST rates for handicrafts goods made of brass, copper, electroplated with nickel/silver and handicrafts of aluminium have also been reduced to 5 perc ent from 12 per cent earlier. Since most of these items are produced by artisans and small-scale enterprises, lower GST will help in making them cheaper and expand the customer base for such products. Since handicraft art ware represents India's heritage, the GST reduction will also help in promoting Indian culture and 'Make in India.'

The mining sector will also benefit due to the GST rates for the supply of multimodal transport of goods within India from 12 per cent to 5 per cent (with restricted credit), particularly in the case of iron ore which involves long distance movements.

- IANS

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Reader Comments

P
Priya S
As someone from Rajasthan where marble mining is a major industry, this will really help local artisans and small businesses. Lower GST means more competitive pricing and better market access for our traditional crafts.
M
Michael C
The reduction on aluminium and copper utensils is a smart move. It promotes sustainable alternatives to plastic while making essential household items more affordable for common people. Win-win situation!
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Sneha F
Hope these benefits actually reach the end consumers. Sometimes retailers don't pass on the GST reduction benefits. Government should ensure proper implementation and monitoring.
A
Aditya G
The kerosene stove GST reduction is particularly important for rural India. Many families still depend on these for cooking, and making them cheaper directly helps the poorest sections of society. 👏
K
Kavya N
Great step for MSMEs and handicraft artisans! Our traditional brass and copper work represents Indian heritage, and lower taxes will help preserve these crafts while making them more accessible to buyers.
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Rohit P
The multimodal transport cost reduction for iron ore movement is a game-changer for mining companies. Logistics cost is a major component, and this will improve competitiveness in the global market.

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