The GST Council has announced rate rationalisation for Tamil Nadu, reducing GST to 5% or nil on items in textiles, handicrafts, coir, food, fisheries, defence, electronics, and automobiles. These changes are expected to lower consumer prices by 6-11% and improve competitiveness for traditional sectors like Kanchipuram silk and Manapparai murukku, benefits for large industries, and job gains across multiple segments-about 10 lakh jobs in Tiruppur knitwear, 22 lakh in automobiles, and 10.5 lakh fisherfolk directly.
Lowering GST on both heritage/traditional crafts and modern industrial inputs helps reduce cost burdens on MSMEs, boosts affordability for consumers, and strengthens export potential. For a state like Tamil Nadu with deep craft traditions and industrial clusters, this could drive inclusive growth and support rural livelihoods while encouraging growth in high-value manufacturing.
Relevant Question for Policy Stakeholders:
How can state and central government ensure that GST rate cuts translate into better income for artisan families and competitiveness for industrial units without revenue erosion?
Follow the full news here: GST Rate Rationalisation: How Tamil Nadu Will Benefit
