GST reforms and Kerala: 5% rate on cashew, coir, spices, seafood and tea; GI products like Malabar Pepper and Vazhakulam pineapple gain
A PIB explainer of 8 October 2025 says the GST rate cuts to 5% on cashew, coir, spices, processed seafood, tea and GI products such as Malabar Pepper and Vazhakulam pineapple will cut costs by about 6–11% for Kerala's producers.
Summary
A PIB explainer of 8 October 2025 sets out how recent GST rate reductions affect Kerala. GST on cashew processing falls from 12%/18% to 5%, helping the Kollam cashew corridor's roughly 3 lakh workers; the 5% rate on cashew and coir together is said to benefit over 6.7 lakh workers. GST on GI-tagged Malabar Pepper falls from 18% to 5%, on instant coffee (Wayanad belt) from 18% to 5%, and on processed pineapple from 12% to 5%, aiding the GI-tagged Vazhakulam pineapple cluster in Ernakulam and Thrissur. Value-added products of Tirur Vettila (betel leaf) from Malappuram fall from 18% to 5%, as do coir products including GI-tagged Alleppey Coir; Kerala accounts for nearly 85% of India's coir production. Tea products and processed seafood also move to 5%, and hotel rooms up to ₹7,500 are taxed at 5%. The cost reductions range from about 6% to 11%.
Key facts
- Cashew
- 12%/18% → 5%; Kollam corridor ~3 lakh workers
- Spices
- Malabar Pepper (GI) 18% → 5%; spice mixes 18% → 5%
- Fruit
- Processed pineapple 12% → 5% — Vazhakulam (GI), Ernakulam & Thrissur
- Betel
- Tirur Vettila (Malappuram) value-added products 18% → 5%
- Coir
- Incl. Alleppey Coir (GI) 18% → 5%; Kerala ~85% of India's coir
- Tourism
- Hotels up to ₹7,500 at 5%
Practice MCQs 2 questions
According to a PIB explainer on GST reforms (October 2025), Kerala accounts for nearly what share of India's coir production?
Show answer
Correct answer: D — 85%
PIB: Kerala accounts for nearly 85% of India's coir production and is a major contributor to the country's coir exports.
'Tirur Vettila' from Malappuram, Kerala, mentioned in the October 2025 PIB explainer on GST reforms, is a:
Show answer
Correct answer: B — Betel leaf
PIB: the Tirur Vettila (Betel Leaf) from Malappuram's Tirur is set to get a push as GST on value-added mouth fresheners and pastes falls from 18% to 5%.