Will GST 2.0 Enhance Housing and Small Enterprises in the Mining Sector?
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Synopsis
Discover how the newly introduced GST 2.0 rates are poised to transform the housing sector and uplift small enterprises in the mining industry. With significant reductions in tax rates, affordable housing and essential goods are within reach for many, promising a brighter future for rural communities.
Key Takeaways
- The GST 2.0 rates will positively impact housing and small enterprises.
- Reduction in GST for marble and granite is beneficial for the construction industry.
- Lower GST rates for essential utensils will enhance affordability for households.
- Supporting MSMEs will lead to higher demand for locally produced goods.
- Promoting handicrafts supports Indian culture and heritage.
New Delhi, Sep 11 (NationPress) The GST 2.0 structure for mining-related products is set to positively influence the housing sector and small businesses, as stated by the Ministry of Mines on Thursday.
The new tax rates indicate that marble and travertine blocks, along with granite blocks, will now be taxed at 5 percent, down from the previous 12 percent. This change is expected to significantly benefit the housing industry since these materials are extensively utilized in construction, particularly in states like Rajasthan, Gujarat, and Karnataka.
Moreover, the reduced GST rates on sand lime bricks and stone inlay work will contribute to lowering the construction expenses for affordable housing, especially in rural regions. The tax for these items will also decrease to 5 percent from 12 percent.
Furthermore, GST rates for aluminium milk cans and copper household items will drop from 12 percent to 5 percent. As these products are essential for daily use, the decrease in GST will likely spur demand due to lower retail prices.
This change will allow families to save on necessary utensils, opting for healthier and more sustainable alternatives to plastic. Additionally, MSMEs involved in the production of these items will experience an increase in demand and market reach, according to the statement.
The GST on brass kerosene pressure stoves has also been cut from 12 percent to 5 percent. This reduction will aid rural and low-income households by making essential cooking tools more affordable, thus enhancing energy access.
Moreover, GST rates for handicrafts made from brass, copper, and electroplated materials have been lowered to 5 percent from 12 percent. These products are primarily crafted by artisans and small enterprises, and the reduced GST will make them more affordable and expand their customer base. This reduction not only supports the artisans but also promotes India's rich cultural heritage and the Make in India initiative.
The mining sector is also set to gain from the GST rate reduction for the multimodal transport of goods within India, dropping from 12 percent to 5 percent (with restricted credit), particularly benefitting the long-distance transport of iron ore.
Point of View
It is imperative to recognize how the GST 2.0 initiative reflects the government's commitment to fostering economic growth and supporting small enterprises. These changes not only aim to reduce costs for consumers but also empower local artisans and businesses, ultimately contributing to a more robust economy for the nation.
NationPress
12/09/2025
Frequently Asked Questions
What is GST 2.0?
GST 2.0 refers to the updated Goods and Services Tax framework that introduces new rates and slabs for various sectors, including mining and housing.
How will GST 2.0 affect housing costs?
The reduction in GST rates for materials like marble and granite is expected to lower housing construction costs, making it more affordable for consumers.
What benefits does GST 2.0 offer to small enterprises?
By lowering the GST rates on essential goods, small enterprises can expect increased demand and a broader market for their products.
Which materials have seen a reduction in GST rates?
Materials such as marble, granite, aluminium household items, and brass handicrafts have had their GST rates reduced from 12% to 5%.
What is the significance of the GST reduction for artisans?
Lower GST rates on handicrafts will make these items more affordable, helping artisans reach a larger customer base and promoting traditional crafts.
