GST 2.0 To Boost Housing, Small Enterprises In Mining Sector: Govt

(MENAFN- IANS) New Delhi, Sep 11 (IANS) The GST 2.0 rates and slabs for items related to the mining sector will have a positive impact on the housing industry and small-scale enterprises, according to a statement issued by the Ministry of Mines on Thursday.

Under the new rates, marble and travertine blocks and granite blocks will now attract a GST of 5 per cent compared to the earlier rate of 12 per cent. This reduction in GST rates will benefit the housing sector as marble and granite are used largely in the housing industry. Granite and marble are being mined in states like Rajasthan, Gujarat and Karnataka.

In addition to this, the 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 per cent from 12 per cent.

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 per cent to 5 per cent. Since such utensils, milk cans and household articles made of aluminium and 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, the statement pointed out.

Further, GST rates on brass kerosene pressure stoves have been reduced from 12 per cent to 5 per cent. This reduction will support rural and low-income families by making the basic cooking tools cheaper, thereby ensuring energy access for all.

GST rates for handicrafts goods made of brass, copper, electroplated with nickel/silver and handicrafts of aluminium have also been reduced to 5 perc ent from 12 per cent earlier. Since most of these items are produced by artisans and small-scale enterprises, lower GST will help in making them cheaper 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 and 'Make in India.'

The mining sector will also benefit due to the GST rates for the supply of multimodal transport of goods within India from 12 per cent to 5 per cent (with restricted credit), particularly in the case of iron ore which involves long distance movements.

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