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
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.
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.