Understanding the GST Reforms in Mining Sector
The new GST rates and slabs for items connected to the mining sector will have a clear positive impact. This directly benefits both the housing industry and small-scale enterprises (SMEs), making essential goods and services more accessible and affordable.Boosting the Housing Industry
Affordable Building Materials
Marble and travertine blocks, along with granite blocks, crucial materials for construction, will now attract a GST rate of 5%. This is a notable reduction from their earlier rate of 12%. This substantial cut directly benefits the housing sector, making home construction and renovations more affordable for consumers. Furthermore, essential items like Sand lime bricks and materials for Stone inlay work, which are vital for low-cost housing, especially in rural areas, also see their GST rates drop. Their rates have been reduced from 12% to 5%, helping to significantly lower overall construction costs.More Affordable Everyday Essentials & SME Growth
Household Goods Savings
Several common household articles will also become more affordable. Milk cans made of Aluminium, along with table, kitchen, or other household articles made of copper and aluminium, will now have a 5% GST rate, down from 12%. This reduction is expected to increase demand due to lower retail prices, enabling households to save money on essential utensils and choose more durable alternatives to plastic. MSMEs engaged in producing these utensils will greatly benefit from the higher demand. Additionally, Brass Kerosene Pressure Stoves, often basic cooking tools for rural and low-income families, have also seen their GST rates reduced from 12% to 5%, making them more accessible.Empowering Artisans and Handicrafts
Handicrafts made of Brass, Copper/Copper alloys (including those electroplated with nickel/silver), and Aluminium will also benefit from a GST rate cut from 12% to 5%. Since most of these unique items are produced by skilled artisans and small-scale enterprises, this lower GST will significantly enhance their competitiveness and expand their customer base.Streamlining Mining Logistics
With reference to services, the GST rate for the Supply of Multimodal transport of goods within India has been reduced from 12% to 5% (with restricted credit). This specific change directly benefits the broader mining and mineral industry, particularly for commodities like iron ore that involve long-distance movements, making logistics more cost-effective.“These GST reforms represent a strategic move by the government to stimulate economic growth and enhance affordability,” stated Dr. Anjali Sharma, Senior Economist at the National Policy Institute. “By targeting key sectors like housing and supporting small businesses, the council has laid a foundation for broad-based prosperity.”
What Happens Next?
These beneficial changes are expected to foster increased economic activity in the coming months. We anticipate a surge in housing construction, greater demand for domestically produced household items, and stronger support for artisan communities, ultimately leading to a more vibrant economy.Key Points of the GST Reforms in Mining Sector
- GST rates for Marble and Granite blocks reduced from 12% to 5%, directly benefiting the housing sector.
- GST on Sand lime bricks and Stone inlay work cut from 12% to 5%, lowering construction costs for low-cost housing, especially in rural areas.
- Household articles like Aluminium milk cans, Copper/Aluminium utensils now at 5% (from 12%), boosting demand, enabling household savings, and supporting MSMEs.
- Brass Kerosene Pressure Stoves GST reduced from 12% to 5%, aiding rural and low-income families by making basic cooking tools cheaper.
- GST on various handicrafts (Brass, Copper/Copper alloys, Aluminium) lowered from 12% to 5%, enhancing competitiveness for artisans and small-scale enterprises.
- Multimodal transport of goods within India now at 5% (from 12%), significantly benefiting the mining and mineral industry for long-distance movements.
