GST rate cuts and Jharkhand: iron 12%→5%, tendu leaves 18%→5%, hotel rooms 12%→5%
A PIB explainer on 11 October 2025 said the recent GST rate cuts help Jharkhand's steel, iron, farm, forest-produce and tourism sectors, with iron cut from 12% to 5% and tendu leaves from 18% to 5%.
Summary
A PIB explainer on 11 October 2025 set out how the recent GST rate cuts affect Jharkhand. The state, formed in 2000, contributes nearly 20–25% of India's steel output, with hubs at Jamshedpur (Tata Steel) and Bokaro (SAIL), and holds nearly 26% of India's iron ore reserves. GST on iron was cut from 12% to 5% (about 6.25% cheaper); on two-wheelers up to 350cc and small cars from 28% to 18%; on processed foodgrains from 12% to 5%; on tendu leaves from 18% to 5% and bamboo from 12% to 5%; and on hotel rooms up to ₹7,500 a night from 12% to 5%. Forest-based industry supports nearly 20 lakh poor and tribal workers, and agriculture contributes 18.2% of the state's GSDP, according to an NCAER–NITI Aayog report cited by PIB.
Key facts
- State facts
- Formed 2000; ~20–25% of India's steel; ~26% of iron ore reserves
- Iron
- 12% → 5%
- Tendu leaves / bamboo
- 18% → 5% / 12% → 5%
- Two-wheelers ≤350cc, small cars
- 28% → 18%
- Hotel rooms ≤₹7,500
- 12% → 5%
- Forest workers
- ~20 lakh
Practice MCQs 2 questions
After the recent GST reforms, what is the GST rate on tendu leaves, according to the PIB explainer on Jharkhand (October 2025)?
Show answer
Correct answer: B — 5%
PIB: the GST rate on tendu leaves has been reduced from 18% to 5%, and on bamboo from 12% to 5%.
Consider the following statements from the PIB explainer on GST reforms and Jharkhand (October 2025): 1. Jharkhand accounts for nearly 26% of India's total iron ore reserves. 2. GST on iron has been reduced from 18% to 5%. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. PIB: Jharkhand accounts for nearly 26% of India's iron ore reserves; GST on iron was cut from 12% (not 18%) to 5%.