The 56th meeting of the GST Council was held on September 03, 2025 in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council inter-alia made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class.
Following the recommendations of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive Notification No. 13/2025-Central Tax (Rate) dated September 17, 2025, implementing significant changes to GST rates across various categories of goods, effective from September 22, 2025.
Major GST Rate Reductions for Handcrafted Items
The most significant change involves substantial reduction in GST rates for handcrafted and artisanal products. Under the new rate structure, most handcrafted items will attract a total GST of 5% (comprising 2.5% Central Tax + 2.5% State Tax for intra-state supplies, or 5% Integrated Tax for inter-state supplies). Additionally, silver filigree work and handmade imitation jewelry have been given special consideration with an even lower rate of 3% (comprising 1.5% Central Tax + 1.5% State Tax for intra-state supplies, or 3% Integrated Tax for inter-state supplies).
Comprehensive Coverage of Traditional Crafts
The notification covers 39 different categories of handcrafted items, providing much-needed relief to traditional artisans and cottage industries. The beneficiary products include handcrafted candles, handbags and jewelry boxes, carved wood products and decorative articles, wooden frames for paintings and mirrors, wood statuettes and ornaments with inlay work, cork artware including sholapith items, mats and basketwork made from natural materials including bamboo and rattan products, handmade paper and paperboard, paper mache articles, and coir products.
The textile and fiber craft sector receives significant benefits with reduced rates on toran and doorway decorations, handmade carpets and floor coverings, handmade lace and tapestries, hand-embroidered articles and shawls, and hand-made braids and ornamental trimming. Stone and clay crafts are also covered, including carved stone products like statues and writing sets, stone artware and inlay work, clay and terracotta tableware and kitchenware, and ornamental ceramic articles including blue pottery.
Glass and metal crafts form another major beneficiary category with ornamental framed mirrors, bangles and beads, glass statues and artware, silver filigree work at the special 3% rate, handmade imitation jewelry also at 3%, and various metal artware including iron, brass, copper, and aluminum products. Traditional items like bells, gongs, base metal ornaments, handcrafted lamps, bamboo and rattan furniture, wooden and metal toys, Ganjifa cards, and articles made from ivory, bone, and other carving materials are all included in the 5% rate category.
Note: Similar notification has been brought under the UTGST Act, 2017 vide No. 13/2025-Union Territory Tax (Rate) dated September 17, 2025 and under the IGST Act, 2017 vide No. 13/2025-Integrated Tax (Rate) dated September 17, 2025.
The Compete Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/09/CBIC-N.No_.-13-2025-CT-IG-UT.pdf
