The 56th GST Council meeting recommended several GST rate reductions to support housing, MSMEs, and the mining sector. GST on marble, travertine, and granite blocks was cut from 12% to 5%, reducing construction costs in housing projects, particularly in states like Rajasthan, Gujarat, and Karnataka. Similarly, sand-lime bricks and stone inlay work will now attract 5% GST, benefiting rural and affordable housing initiatives.
For essential household goods, GST on aluminium milk cans, copper and aluminium kitchen and tableware was reduced to 5%, expected to increase demand and provide affordable, durable alternatives to plastic utensils. MSMEs engaged in manufacturing these items may see growth in demand and market expansion. GST on brass kerosene pressure stoves was also reduced to 5%, supporting rural and low-income households with cheaper cooking solutions.
The handicrafts sector also gained relief, with GST on brass, copper (including electroplated items), and aluminium handicrafts reduced to 5%. This aims to improve competitiveness, boost artisan incomes, and promote India’s cultural heritage and ‘Make in India’ initiative.
In the mining sector, GST on multimodal transport of goods within India was reduced from 12% to 5% (with restricted credit), easing logistics costs for long-distance mineral movement, especially iron ore. These reforms collectively aim to reduce input costs, support small-scale industries, and improve affordability for the aspirational middle class and rural population.
Would you like me to prepare a tabular comparison of old vs. new GST rates for all the mentioned items and services (marble, bricks, utensils, stoves, handicrafts, transport)? This would make it visually easy to follow for readers.
Ministry of Mines
GST Reforms in Mining Sector to Boost Housing and Small-scale Enterprises
The 56th meeting of the GST Council held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman made recommendations relating to changes in GST tax rates, to provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST. The new GST rates and slabs for items related to mining sector will have a positive impact on housing industry and small-scale enterprises.
Under the new rates, Marble and travertine blocks and Granite Blocks will now attract GST rate of 5% compared to the earlier rate of 12%. This reduction in GST rates will benefit the housing sector as these marble and granite are used largely in housing industry. Granite and marble extraction are happening in States like Rajasthan, Gujarat and Karnataka.
In addition to this, 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% from 12%.
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% to 5%. Since such utensils, milk cans and household articles made of Aluminium/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.
Further, GST rates on Brass Kerosene Pressure Stove have been reduced from 12% to 5%. This reduction will support rural/ low-income families by making the basic cooking tools cheaper, thereby ensuring energy access for all.
GST rates for handicrafts of Brass, Copper/Copper alloys electroplated with nickel/silver and handicrafts of Aluminium are also brought down to 5% from the earlier 12%. Since most of these items are produced by artisans and small-scale enterprises, lower GST will help their competitiveness 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 & ‘Make in India’.
With reference to recommendations on GST rates on services pertaining to the Ministry of Mines, reduction of GST rates for Supply of Multimodal transport of goods within India from 12% to 5% (with restricted credit) will benefit the mining and mineral industry, particularly iron ore which involves long distance movements.
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