GST 2.0 to boost housing sector, small-scale enterprises: Mines Ministry

New Delhi, Sep 11 (PTI) The new GST rates and slabs for items related to the mining sector, including marble and granite will have a positive impact on the housing industry and small-scale enterprises, the mines ministry said in a statement.

After the GST overhaul last week, may products related to the mining sector will attract 5 per cent rate instead of 12 per cent now.

This will benefit the housing sector as marble and granite are used largely in the housing industry. Granite and marble extraction is undertaken in Rajasthan, Gujarat and Karnataka.

Also, the new GST rate on lime bricks or stone inlay work will help lower the construction cost of low-cost housing, especially in rural areas. This will support rural, low-income families by making the basic cooking tools like brass kerosene pressure stove cheaper.

Similarly, handicraft of brass, copper alloys electroplated with nickel, silver and handicraft of aluminium will be cheaper, benefitting artisans and small-scale enterprises.

"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 per cent to five per cent (with restricted credit) will benefit the mining and mineral industry, particularly iron ore which involves long distance movements," it said.

Effective September 22, GST will be levied at 5 and 18 per cent on most goods and services, while a separate 40 per cent rate will be applicable on ultra-luxury items and tobacco-related products. PTI SID ANU ANU