Rate reduction on Marble & travertine blocks and granite blocks from 12% to 5%
On 56th GST Council meeting it was decided that the Marble & travertine blocks and granite blocks GST rate reduced from 12% down to 5%. The changes in GST rates will be implemented with effect from 22nd September 2025. So far quarry slabs and raw blocks used in construction or finish work, this is a big change in the tax structure.
Impacts of the Change
Here are what these changes mean for quarry / stone businesses, and for related sectors (construction, housing, tiles, etc.):
| Benefits | Details | |
| 1 | Lower input costs | Buyers of stone slabs will now incur less GST, reducing cost of raw materials. This helps developers, contractors, artisans. |
| 2 | Reduced product price | Cost savings may be passed onto customers, making marble, granite, and stone slab-based finishing more affordable. |
| 3 | Improved cash flow for suppliers | Less tax burden and perhaps less inverted duty cases for businesses dealing in stone slabs. They’ll have fewer refunds to wait for, especially where input tax used to be close or higher than output. |
| 4 | Simplified compliance | With reduced rate, classification issues (slabs vs processed stone) become simpler as many slabs & blocks are now under a lower slab. |
| 5 | Boost to construction sector | Since quarry slabs are essential in building façades, interiors, flooring, etc., lower GST helps reduce overall building & housing costs. |
Things to Watchout
| Issues | What Businesses Should Check | |
| 1
|
Classification clarity | Ensure your product is correctly classified under HS Code headings that benefit from the 5% slab. Misclassification can lead to audits / demand notices. |
| 2
|
Input Tax Credit (ITC) | If inputsare taxed higher than 5%, there might still be some inverted duty issues for downstream processors. |
| 3
|
Rate changes’ effect timelines | Make sure your business applies correct GST from the effective date (not earlier) to avoid disputes. |
| 4
|
Profit margin pressure | Even though downstream pricing might drop, competition could force margins down too. Suppliers might see less margin if buyers push for lower selling prices. |
Recommendations for Trade/Business (What Quarry / Stone Businesses Should Do)
1. Recheck your HS Codes – Look at your invoice items, whether slabs are “roughly trimmed” or “merely cut”, etc., because different treatment can change rate.
2. Update your GST Returns – Ensure from the date the rate change became applicable, you are charging 5%, not 12%.
3. Analyse your ITC vs output tax – If input taxes still high, check whether IDS applies or whether you have refunds eligible.
4. Analyse ITC accumulation post rate changes to identify possible IDS impacts early.
5. Proactively file IDS refund claims to avoid working capital blockages.
6. Communicate it to customers – Let your buyers know that blocks/slabs are now cheaper — this may help win new orders.
7. Monitor downstream costs – Finishing, cutting, transport, etc., to see if overall cost saving is realised or eaten up by other components.
Conclusion
The reduction of GST on quarry slabs, marble, granite, and other building stones from 12% to 5% is a welcome move for the construction and allied sectors. It not only lowers input costs and makes stone-based products more affordable but also reduces working capital blockages caused by inverted duty structures.
However, businesses must exercise caution in correct product classification and proper ITC management to fully benefit from the change. If implemented carefully, this reform will support the ease of doing business, improve liquidity for suppliers, and help bring down overall project costs for end consumers.
*****
The author can be reached at venkateshm33@gmail.com for any queries or further clarifications.
Author Bio
