GST Rates on Construction, Cement and Handicrafts Sector After 56th GST Council Meeting

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The 56th GST Council meeting has announced key rationalisations in the construction sector and handicrafts sector. These changes aim to provide relief to essential construction materials while also promoting India’s traditional art and handicrafts industry. The revised rates will come into effect from 22nd September 2025.


Construction Sector

(12% to 5%)

S. No.Chapter / Heading / Sub-heading / Tariff itemDescription of Goods
168Sand lime bricks or Stone inlay work

(28% to 18%)

S. No.Chapter / Heading / Sub-heading / Tariff itemDescription of Goods
12523Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers

Handicrafts Sector

(12% to 5%)

S. No.Chapter / Heading / Sub-heading / Tariff itemDescription of Goods
144, 68, 83Idols of wood, stone [including marble] and metals [other than those made of precious metals]
26802Statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and foliage, etc.; other ornamental goods essentially of stone
36913Statues and other ornamental articles
49601Worked ivory, bone, tortoise shell, horn, antlers, mother of pearl, and other animal carving material and articles of these materials, articles of coral (including articles obtained by moulding)
59701Paintings, drawings and pastels, executed entirely by hand, other than drawings of heading 4906 and other than hand-painted or hand-decorated manufactured articles; collages, mosaics and similar decorative plaques
69702Original engravings, prints and lithographs
79703Original sculptures and statuary, in any material
89705Collections and collectors’ pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, paleontological, ethnographic or numismatic interest [other than numismatic coins]
99706Antiques of an age exceeding one hundred years
103406Handcrafted candles
114202 22, 4202 29, 4202 31 10, 4202 31 90, 4202 32, 4202 39Handbags including pouches and purses; jewellery box
124416, 4421 99 90Carved wood products, art ware/decorative articles of wood (including inlay work, casks, barrel, vats)
134414Wooden frames for painting, photographs, mirrors etc
144420Statuettes & other ornaments of wood, wood marquetry & inlaid, jewellery box, wood lathe and lacquer work [including lathe and lacquer work, ambadi sisal craft]
154503 90 90, 4504 90Art ware of cork [including articles of sholapith]
166117, 6214Handmade/hand embroidered shawls of sale value exceeding Rs. 2500 per piece
176802Carved stone products (e.g., statues, statuettes, figures of animals, writing sets, ashtray, candle stand)
186815 99 90Stone art ware, stone inlay work
19691200 10, 691200 20Tableware and kitchenware of clay and terracotta, other clay articles
206913 90 00Statuettes & other ornamental ceramic articles (incl blue potteries)
217009 92 00Ornamental framed mirrors
227018 90 10Glass statues [other than those of crystal]
237020 00 90Glass art ware [incl. pots, jars, votive, cask, cake cover, tulip bottle, vase]
247326 90 99Art ware of iron
257419 80Art ware of brass, copper/copper alloys, electro plated with nickel/silver
267616 99 90Aluminium art ware
278306Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali)
289405 10Handcrafted lamps (including panchloga lamp)
299401 50, 9403 80Furniture of bamboo, rattan and cane
309503Dolls or other toys made of wood or metal or textile material [incl wooden toys of Sawantwadi, Channapatna toys, Thanjavur doll]
319504Ganjifa card
329601Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material
339602Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc. (including articles of lac, shellac)
349701Hand paintings, drawings and pastels (incl Mysore painting, Rajasthan painting, Tanjore painting, Palm leaf painting, basoli etc)
359703Original sculptures and statuary, in metal, stone or any material
364802Handmade Paper and Paper board

By reducing GST on essential construction materials such as sand lime bricks, stone inlay work, and cement, the Council has aimed to provide relief to the housing and infrastructure sectors.

In the handicrafts sector, the decision to reduce rates to 5% across a wide range of handcrafted items—such as idols, statues, wooden crafts, handmade paper, shawls, paintings, sculptures, and traditional toys—provides a big boost to artisans, craftsmen, and the cottage industry. These measures not only make handicrafts more affordable for consumers but also encourage the preservation and promotion of India’s rich cultural heritage.

Overall, these reforms in construction and handicrafts are expected to stimulate employment, support artisans, and reduce costs in essential sectors, thereby aligning GST with both economic and cultural priorities.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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