The 56th meeting of the GST Council, chaired by Union Finance and Corporate Affairs Minister Nirmala Sitharaman, has approved a series of tax rate changes aimed at easing costs for households, boosting the housing sector, and supporting small-scale enterprises.
The council recommended lowering the GST rate on several items linked to the mining and construction sector. Marble and travertine blocks, along with granite blocks, will now attract a GST rate of 5 percent, down from the earlier 12 percent. This reduction is expected to directly benefit the housing industry, where these materials are extensively used. States such as Rajasthan, Gujarat, and Karnataka, which are major hubs of granite and marble extraction, are likely to see positive spillover effects.
Similarly, the GST on sand lime bricks and stone inlay work has been cut from 12 percent to 5 percent, a move that is expected to reduce construction costs, especially for low-cost housing in rural areas.
In the consumer goods segment, GST on milk cans made of aluminium, as well as household articles of copper and aluminium such as kitchen and tableware, has been reduced to 5 percent. The government expects the lower tax burden to make these everyday essentials more affordable, encourage households to adopt durable alternatives to plastic, and boost demand for products manufactured by MSMEs.
The GST on brass kerosene pressure stoves has also been lowered from 12 percent to 5 percent, supporting rural and low-income families by making basic cooking tools cheaper.
Handicrafts made of brass, copper (including those electroplated with nickel or silver), and aluminium will also be taxed at 5 percent instead of 12 percent. The reduction is aimed at enhancing the competitiveness of artisans and small-scale enterprises, widening their market reach, and promoting India’s cultural heritage and Make in India initiative.
For the mining sector, the GST on multimodal transport of goods within India has been reduced from 12 percent to 5 percent (with restricted credit). This measure is expected to lower logistics costs for the mining and minerals industry, particularly for commodities like iron ore that involve long-distance transportation.
The reforms are intended to provide relief to the common man, address the aspirations of the middle class, and promote trade facilitation under GST.
