Tarun Karthick
Sri Vijaya Puram, 05 September 2025
The Andaman Nicobar Chamber of Commerce and Industry (ANCCI) has welcomed the decisions taken at the 56th GST Council meeting chaired by Union Finance Minister, Ms. Nirmala Sitharaman, describing the reforms as “historic” and a major relief for the common man, the middle class, and businesses in the islands.
Highlighting the challenges faced by islanders due to geographical isolation and dependence on sea and air connectivity, ANCCI noted that the high cost of transporting essential goods from the mainland has long burdened consumers. The chamber pointed out that repeated transshipments to far-flung islands significantly inflate the landing cost of commodities, on which GST is then applied, making everyday necessities costlier compared to mainland India.
Citing an example, ANCCI explained that while a bag of cement costs around ₹250 at the manufacturer’s end in the mainland, the additional transportation charges of ₹170–₹250 push up prices considerably by the time it reaches the islands. Consequently, GST amounts to nearly ₹120–₹140 per bag in the islands, compared to just ₹50–₹80 on the mainland.
The chamber said the GST Council’s decision to slash the tax rate on cement from 28% to 18% will save islanders nearly ₹50 per bag, directly benefiting families aspiring to construct pucca RCC homes. It also welcomed the rationalisation of tax slabs, including reducing the 28% category to 18%, bringing several 12% slab products down to 5%, and lowering GST on essential daily-use items to 5%.
Terming the decisions “bold and courageous,” ANCCI President Dr. K. Chandrasekharan extended gratitude on behalf of the islanders to the Prime Minister and the Union Government for taking steps that, he said, would provide relief to households and promote inclusive growth. (Story Based on PR)
