GST Reduced to 5% on Building Materials, Utensils, and Handicrafts to Benefit Public and MSMEs

The 56th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, has announced a significant reduction in GST rates aimed at providing relief to the common man and supporting small-scale businesses. The Council approved lowering the GST on building materials, household utensils, handicrafts, and certain transport services from 12% to 5%.

Key items benefiting from this change include marble, granite, and sand-lime bricks, widely used in the housing sector. The reduction is expected to lower construction costs, particularly for affordable housing projects and rural developments, while boosting demand for building materials. States like Rajasthan, Gujarat, and Karnataka, where large-scale marble and granite extraction takes place, are likely to see increased business activity.

In addition to building materials, essential household items such as aluminium milk cans, copper and aluminium utensils, and tableware will now attract a lower GST. This move is expected to reduce retail prices, making daily essentials more affordable for middle-class and rural families. MSMEs involved in manufacturing these products are likely to benefit from higher demand and wider market access.

Handicrafts, including brass, copper, and aluminium artware, will also see a GST cut to 5%. Since these items are primarily produced by artisans and small-scale enterprises, the reduced tax will enhance their competitiveness and promote Indian cultural heritage. The Council emphasized that supporting handicraft industries aligns with the broader ‘Make in India’ initiative and encourages local craftsmanship.

Furthermore, GST on multimodal transport of goods within India has been reduced from 12% to 5%, benefiting the mining and mineral sectors, especially iron ore transport over long distances.

Overall, these changes are expected to make essential goods and construction materials more affordable, stimulate small business growth, and provide tangible relief to rural and middle-class households. With lower taxes, the ripple effect is likely to boost economic activity, support MSMEs, and make India’s housing and handicraft sectors more competitive.