The Government of India has announced significant tax rate cuts under the new GST 2.0 regime, aiming to boost the housing sector and support small enterprises linked to the mining industry. According to a statement issued by the Ministry of Mines on Thursday, the revised GST slabs are expected to lower construction costs, make essential household goods more affordable, and expand market opportunities for small-scale manufacturers.
Under the new rates, marble, travertine, and granite blocks will now attract 5% GST, down from the previous 12%. These materials, primarily mined in Rajasthan, Gujarat, and Karnataka, are widely used in housing construction. The ministry noted that this reduction would directly benefit the housing sector by cutting material costs.
Similarly, GST on sand lime bricks and stone inlay work has been brought down from 12% to 5%, which is expected to reduce the cost of low-cost housing projects, particularly in rural areas.
The new tax structure also lowers GST from 12% to 5% on aluminium milk cans, copper and aluminium household articles, and tableware. As these are essential household items, the government expects their retail prices to drop, spurring consumer demand. This, in turn, could benefit micro, small, and medium enterprises (MSMEs) engaged in their production by widening their market reach.
In addition, brass kerosene pressure stoves will now attract 5% GST instead of 12%. The ministry highlighted that this move will support rural and low-income households by making basic cooking equipment more affordable and ensuring wider energy access.
Handicraft goods made of brass, copper, and electroplated with nickel or silver, as well as aluminium handicrafts, will also see their GST rates reduced from 12% to 5%. The ministry said this would make traditional handicrafts more affordable, benefiting artisans and small-scale producers while promoting Indian cultural heritage and aligning with the Make in India campaign.
The mining sector itself is expected to gain from the reduction in GST on multimodal transport of goods within India, from 12% to 5% (with restricted credit), particularly for long-distance movement of iron ore. The ministry said this would lower transportation costs and improve efficiency across the sector.
