CBIC Notifies Revised GST Rates on Handicrafts, Artware and Building Materials Effective Sept 22 2025

The Central Board of Indirect Taxes and Customs (CBIC) has issued a series of notifications revising Goods and Services Tax (GST) rates applicable to various categories of goods, including handicrafts, artware, imitation jewellery, and building materials. The changes will come into effect from September 22, 2025.

Key Highlights of the Notification

Handicrafts & Artware

• Handcrafted items such as candles, handbags, jewellery boxes, carved wood products, paintings, stone and glass artware, bamboo furniture, and traditional toys will attract 2.5% Central GST (CGST) and 2.5% Union Territory GST (UTGST), making the total effective GST rate 5% on intra-State supplies.
• For inter-State transactions under IGST, the notified rate has been set at 5%.

Precious & Imitation Jewellery

• Silver filigree work and handmade imitation jewellery, including those crafted with natural seeds, beads, and cardamom garlands, will be taxed at a concessional rate of 1.5% CGST + 1.5% UTGST (3% total) and 3% IGST for inter-State supplies.

Building Materials

A new notification prescribes 6% CGST (with a corresponding 6% SGST/UTGST, making it 12% total) on key building materials such as:

• Fly ash bricks, aggregates, and blocks
• Fossil meal-based or siliceous earth bricks
• Building bricks
• Earthen or roofing tiles

Policy Intent

The revised rates are aimed at:

• Supporting artisans and craftsmen by keeping tax rates on handicrafts and artware at concessional levels.
• Encouraging traditional Indian crafts like Mysore paintings, Channapatna toys, Tanjore dolls, Dhokra art, and bamboo furniture.
• Streamlining taxation on building materials to promote the use of eco-friendly products like fly ash bricks in construction.

Effective Date

All revised GST rates will be applicable from September 22, 2025.

Official copy of the notification has been attached