GST Council Cuts Rates on Marble, Granite, and Household Metals to 5%; Lifts MSME Demand

New Delhi, September 11, 2025: The GST Council’s 56th meeting reduced the tax on most mining-related materials and household metal items to 5% from 12%, aiming to cut down construction costs and boost demand among small and medium enterprises.

The rate rationalisation includes marble and travertine blocks, granite blocks, sand-lime bricks, and stone inlay work, as well as aluminium milk cans and general household items made of copper and aluminium. Brass kerosene pressure stoves and various handicraft items of brass, copper, and aluminium also shift to the 5% slab. GST on multimodal transportation of goods inside India has also come down to 5% with limited credit. This is a step likely to benefit especially long-haul transport of minerals like iron ore.

The Ministry of Mines observed the steps would benefit the housing sector, particularly in states with large-scale stone extraction like Rajasthan, Gujarat and Karnataka, while increasing market opportunities for artisans and MSMEs in metalware and handicrafts.

What Changed At A Glance?

Key GST rate cuts: before and after

The recent GST Council changes have shown major relief in several categories, with the rate on many goods and services lowered from 12% to 5%. Among raw materials, marble, travertine, and granite blocks will attract a lower GST of 5% compared to the previous 12%. In the same way, sand-lime bricks and stone inlay work also got shifted to the 5% category.

Utility items like aluminium milk cans, copper and aluminium household goods, and brass pressure stoves for kerosene have all benefited from tax reductions, saving consumers as well as small enterprises.

In the handicrafts category, products like brass handicrafts, copper or alloy of copper electroplated with nickel or silver, and aluminium handicrafts will now be taxed at only 5%. The supply of multimodal transportation of goods within India will also undergo a rate reduction to 5% from 12%, a step likely to reduce logistics expenses and favour supply chain efficiency.

*With specified input tax credit restriction.

Why It Matters?

Reducing GST on stone blocks, sand-lime bricks, and inlay work directly reduces material expenditure in housing, which will contribute towards affordable construction in rural and semi-urban markets. The rate cuts for Aluminium milk cans and generic copper/aluminium household utensils will help lower daily household costs and encourage demand for more long-lasting metal options over plastic.

Lower-brass kerosene stoves support rural and low-income users. The wide-scale price cut for brass, copper and aluminium handicrafts supports artisans’ earnings and sustains the traditional crafts by expanding the customer base at reduced prices.

The 5% GST on multimodal transport of merchandise, while with constrained credit, is likely to reduce logistics expenses in bulk minerals. This supports the mining and mineral supply chain, such as long-distance flows of iron ore and other minerals.

Sector Impact And Likely Transmission

• Housing and construction: Relief in input costs from stone and brick segments can enhance affordability and provide support to existing projects’ budgets, especially where marble and granite are default finishes.
  MSMEs and artisans: Reduced final prices should increase addressable demand, enhancing throughput and inventory turns for small-scale producers and craft groups.
• Rural consumption: Lower prices for metalware and kerosene stoves favor basic spending baskets in non-metro economies.
• Mining logistics: The reduced GST on multimodal transportation increases cost-effectiveness for long-distance mineral transport, supporting margins along the supply chain.

Outlook

With essentials and inputs having multiple items shifted into the 5% slab, the immediate stimulus should be disinflationary for specific construction materials and favorable for MSME-driven metalware and handicrafts demand. Implementation will depend on timely pass-through by distributors and suppliers as amended rates get infused into invoices and retail labels. The rate cuts announced are in line with the reforms introduced during the week, simplifying indirect taxes in India and pushing high consumption and demand in the market.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2165564

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