SF Prep Notes

GST cuts and Chhattisgarh: cement, handloom, tribal crafts and dairy

A PIB backgrounder of 17 October 2025 said the reduction of GST on cement from 28% to 18% and on handlooms, handicrafts and dairy to 5% is expected to boost demand and jobs in Chhattisgarh.

Summary

A PIB backgrounder of 17 October 2025 examined how recent GST cuts affect Chhattisgarh's economy. GST on cement was reduced from 28% to 18%, which the release says lowers construction costs in a state whose cement industry is concentrated in Korba, Raigarh, Bilaspur, Raipur and Naya Raipur. Handlooms, handicrafts and packaged dairy products now attract 5% GST. The handloom sector supports nearly 1.5 lakh weavers, many of them women, with cotton clusters in Raipur, Durg, Mahasamund and Bastar and tussar and kosa silk in Janjgir-Champa and Raigarh; powerloom rates were trimmed from 12%/18% to 5%. The release notes that Chhattisgarh was formed in 2000 from Madhya Pradesh, is India's 9th largest state and has over 25 million people.

Key facts

Cement GST
28% → 18%
Handloom/handicrafts/dairy
5% GST
Weavers
Nearly 1.5 lakh
Silk
Tussar and kosa — Janjgir-Champa, Raigarh
Cement belt
Korba, Raigarh, Bilaspur, Raipur, Naya Raipur
State
Formed 2000 from MP; 9th largest; 25 million+ people

Practice MCQs 2 questions

Q1

Under the recent GST reforms, GST on cement was reduced from 28% to what rate, as noted in PIB's Chhattisgarh backgrounder?

Show answer

Correct answer: C — 18%

PIB: the reduction of GST on cement from 28% to 18% makes cement more affordable and lowers construction costs.

Q2 Advanced

According to PIB's October 2025 backgrounder, the handloom sector in Chhattisgarh provides livelihood to nearly how many weavers?

Show answer

Correct answer: D — 1.5 lakh

PIB: the handloom sector provides a vital livelihood for nearly 1.5 lakh weavers, many of whom are women.

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