New Delhi, Sep 4 (UNI) The GST Council has approved a set of sweeping reforms that bring direct relief to micro, small, and medium enterprises (MSMEs) and small traders, with lower rates on labour-intensive goods, correction of inverted duty structures, and cheaper inputs for agriculture and manufacturing.
Key changes include a sharp reduction of GST on handicrafts, intermediate leather goods, and marble and granite blocks from 12% to 5%.
These sectors, dominated by small workshops and clusters, are among the largest employers in semi-urban and rural belts.
The relief is expected to support order books, protect shop-floor jobs, and stabilise margins.
The long-pending inverted duty structure in textiles has also been addressed, with GST on manmade fibre slashed from 18% to 5% and on manmade yarn from 12% to 5%.
A similar correction has been applied to the fertiliser sector where sulphuric acid, nitric acid and ammonia will now be taxed at 5% instead of 18%, lowering costs for agro-based MSMEs.
For small manufacturers, the cut in GST on cement from 28% to 18% brings down input costs for construction-linked industries, while auto parts have been placed under a uniform 18% rate, removing classification-related disputes that often created compliance hurdles for small garages, workshops, and component makers.
Renewable energy device manufacturers, many of whom are MSMEs, will also benefit from the lower 5% rate on equipment and parts.
For small businesses, the GST Council’s move is expected to reduce confusion, simplify compliance, and lower disputes with tax authorities, creating a more predictable environment for long-term planning.
This move is expected to boost small-scale units engaged in solar and wind energy components, supporting India’s clean energy push while strengthening business prospects for smaller firms in the supply chain.
