Debasis Mohapatra
Bengaluru, 12 September 2025
GST rate cut announced by the Indian government is likely to support the growth of small and medium enterprises (SMEs). In a press release, the Ministry of Mines pointed out that deep cuts in GST rates across various metal items would support consumption growth.
Rate cut on aluminium & copper items:
- GST rates of Milk cans made of aluminium; table, kitchen or other household articles of copper as well as aluminium will see the GST rate reduced from 12% to 5%. Since such utensils, milk cans and household articles made of aluminium/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. MSMEs engaged in production of such utensils will also benefit from higher demand and wider markets for such products.
Rate cut on brass, copper, nickel & silver items:
- GST rates for handicrafts of brass, copper/copper alloys electroplated with nickel/silver and handicrafts of aluminium are also brought down to 5% from the earlier 12%. Since most of these items are produced by artisans and small-scale enterprises, lower GST will help their competitiveness and expand the customer base for such products. The GST reduction will help in promoting ‘Make in India’ movement.
