Why in News?
• GST Bachat Utsav kicked off on 22 September with a wide set of GST rate reductions, benefitting agriculture, housing, construction and MSME-linked sectors.
- I) Agriculture Sector – Relief for Farmers
Major GST Cuts
• Tractors <1800 CC → reduced from 12% → 5%
• Specified Bio-pesticides, Micronutrients, Drip Irrigation systems, Sprinklers & agri-cultivation machinery → 12% → 5%
Impact
• tractors become more affordable for small & medium farmers
• encourages farm mechanisation
• lowers labour dependence → improves per-acre productivity
• reduces input cost of modern cultivation techniques
- II) Housing & Construction Sector – Affordable Housing Push
Major GST Cuts
• Construction materials & services → 28% → 18%
• Marble & granite blocks → 12% → 5%
• Sand-lime bricks → 12% → 5%
Impact
• lowers cost of construction
• reduces home-buyer burden
• boosts MSMEs (tiles, stones, fittings, raw materials, civil contractors)
• supports Housing for All / urbanisation / infra push
• accelerates private investment in infra-linked value chains
Significance of GST 2.0 Reform Logic
- turns GST into an industrial policy tool
• incentivises modernisation (agri mechanisation + affordable housing)
• creates jobs, improves consumption & expands manufacturing base