India: GST reforms to benefit aluminium, copper sectors

• GST cut to 5% on various goods to boost demand
• Lower rates on handicrafts to support artisans

The GST Council, in its 56th meeting chaired by Union Finance Minister Nirmala Sitharaman, has announced major tax relief measures for aluminium and copper products, aiming to boost demand, support households, and strengthen small-scale enterprises.

One of the key changes is the reduction of GST rates on aluminium and copper household articles — such as tables, kitchenware, and milk cans — from 12% to 5%. This move will directly lower retail prices, making essential metal utensils more affordable for households. With consumers increasingly seeking durable and healthier alternatives to plastic, demand for aluminium and copper items is expected to rise. The measure also provides a significant boost to micro, small, and medium enterprises (MSMEs) engaged in manufacturing these goods, by widening their market reach and improving competitiveness.

In addition, the GST Council has reduced rates on handicrafts made from brass, copper alloys, and aluminium from 12% to 5%. These handicrafts, largely produced by artisans and small enterprises, will now benefit from stronger demand, both domestically and internationally. The lower GST will enhance the competitiveness of traditional crafts, helping preserve India’s cultural heritage while promoting “Make in India” products.

GST rates for handicrafts of brass, copper/copper alloys electroplated with nickel/silver and handicrafts of aluminium have also been brought down to 5% from the earlier 12%.

Overall, the reforms are set to create a positive cycle for the aluminium and copper sectors, boosting household consumption, improving MSME profitability, and expanding opportunities for artisans in the handicraft industry.

Outlook

The GST rate cut from 12% to 5% on aluminium and copper household articles, milk cans, and handicrafts is expected to boost consumer demand by reducing prices while strengthening MSMEs and artisan-led enterprises through wider market access and improved competitiveness. In the near term, households will benefit from more affordable, durable alternatives to plastic, and small manufacturers are likely to see higher sales volumes.

Over the medium term, handicraft exporters may also gain from better positioning in global markets, aligning with the government’s “Make in India” agenda and supporting growth across downstream non-ferrous sectors.