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GST Reforms In Mining Sector To Boost Housing And Small-Scale Enterprises
GST Reforms In Mining Sector To Boost Housing And Small-Scale Enterprises
The 56th meeting of the GST Council held last week made recommendations relating to changes in GST tax rates, to provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.
New Delhi: Under the new rates, Marble and travertine blocks and Granite Blocks will now attract GST rate of 5% compared to the earlier rate of 12%. This reduction in GST rates will benefit the housing sector as these marble and granite are used largely in housing industry. Granite and marble extraction are happening in States like Rajasthan, Gujarat and Karnataka, said Ministry of Mines.
In addition to this, reduction of GST rates on Sand lime bricks or Stone inlay work will help lower the construction cost of low-cost housing, especially in rural areas. The GST rates of such items are also being brought down to 5% from 12%, Ministry of Mines added.
The 56th meeting of the GST Council held last week made recommendations relating to changes in GST tax rates, to provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST. The new GST rates and slabs for items related to mining sector will have a positive impact on housing industry and small-scale enterprises.
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(Also Read: 8th Pay Commission 14-Point Update)
GST rates of Milk cans made of Aluminium; Table, kitchen or other household articles of copper as well as Aluminium will also see GST rate reduced from 12% to 5%. Since such utensils, milk cans and household articles made of Aluminium/Copper are everyday essentials, the reduction in GST rate will increase demand due to reduced retail price. This will also enable households to save money on essential utensils and enjoy healthier and more durable alternatives to plastic. MSMEs engaged in production of such utensils will also benefit from higher demand and wider markets for such products.
Further, GST rates on Brass Kerosene Pressure Stove have been reduced from 12% to 5%. This reduction will support rural/ low-income families by making the basic cooking tools cheaper, thereby ensuring energy access for all.
(Also Read: GST Rules On Old Unsold Packs Of Products)
GST rates for handicrafts of Brass, Copper/Copper alloys electroplated with nickel/silver and handicrafts of Aluminium are also brought down to 5% from the earlier 12%. Since most of these items are produced by artisans and small-scale enterprises, lower GST will help their competitiveness and expand the customer base for such products. Since handicraft art ware represents India's heritage, the GST reduction will also help in promoting Indian Culture & ‘Make in India'.
With reference to recommendations on GST rates on services pertaining to the Ministry of Mines, reduction of GST rates for Supply of Multimodal transport of goods within India from 12% to 5% (with restricted credit) will benefit the mining and mineral industry, particularly iron ore which involves long distance movements.
Source: ZeeNews
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