GST Rationalistaion: Cultivating Growth, Crafting Prosperity in MizoramGSTDated:- 13-10-2025Key Takeaways
* GST cut from 18% → 5% on processed Mizo Bird’s Eye Chilli, ginger and turmeric to benefit farmers and promote expor
GST Rationalistaion: Cultivating Growth, Crafting Prosperity in Mizoram
GST
Dated:- 13-10-2025
Key Takeaways
* GST cut from 18% → 5% on processed Mizo Bird's Eye Chilli, ginger and turmeric to benefit farmers and promote exports.
* Processed fruit products, including passion fruit juice and pulp, now taxed at 5%, creating jobs in local food units.
* All bamboo and cane products brought under a 5% GST slab, supporting rural artisans and eco-friendly livelihoods.
* Hotel rooms up to Rs.7,500/night taxed at 5%, making Mizoram more attractive for travellers and boosting employment.
Introduction
Mizoram's economy is deeply rooted in its land and forests, from organic spices and horticultural crops to bamboo crafts and eco-tourism. The state's unique terrain and traditional farming practices give its products a distinct identity, with the Mizo Bird's Eye Chilli recognised as a Geographical
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e and household income.
Mizoram produced about 10,918 metric tonnes of Mizo chilli in 2020-21. A study conducted in Aizawl district during 2017-18 estimated an average gross income of Rs.1.57 lakh per hectare, underlining its economic importance for small farmers.
The chilli is also finding new global markets, the state recorded its first official export of 7.5 metric tonnes to the United States in March 2023, while around 20,000 tonnes are estimated to be traded annually to Bangladesh and neighbouring states through informal channels. Small food processing and pickle units linked to the chilli also provide employment opportunities, typically engaging around 10 to 12 persons per unit.
With GST reduced from 18% to 5% on processed and packaged chilli products, farmers and processors are expected to benefit directly. The lower rate will make packaged chilli more affordable in domestic markets, promote branding and value addition, and st
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n FY 2024-25 (up to February), with spices forming an important component of that basket.
With GST reduced from 18% to 5% on processed and packaged products, value-added spice producers will benefit from lower input costs and better market access. The change is also expected to make Mizoram's organic spices more competitive in both domestic and export markets, where consumer demand for natural and chemical-free produce continues to grow.
Passion Fruit
Mizoram is India's third-largest producer of passion fruit, and cultivation is expanding rapidly due to favourable climatic conditions. In 2023-24, the state produced over 3.4 lakh tonnes of fruits, including passion fruit, spread across nearly 69,000 hectares. Passion fruit processing has created new entrepreneurial opportunities in juice and concentrate production, offering additional income for farmers and women's groups.
The reduction of GST on processed fruit products from 12-18% to 5% will make passion f
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GST structure, bamboo furniture and all bamboo or cane handicraft products are now taxed at a uniform rate of 5%, down from the earlier higher slabs. The reduced rate will make bamboo products more affordable, stimulate domestic demand and enhance Mizoram's competitiveness in the national handicraft market. With India's bamboo industry valued at nearly Rs.24,000 crore (in 2019), this reform opens up new opportunities for Mizoram's artisans, promoting green livelihoods and sustainable rural growth.
Tourism and Hospitality
Tourism is fast emerging as a key engine of growth and employment in Mizoram. Blessed with scenic hills, lush forests and a vibrant cultural heritage, the state is positioning itself as a major destination for eco-tourism and adventure travel. Visitors are drawn to its serene landscapes, traditional festivals and community-based homestays that reflect the warmth and hospitality of Mizo culture.
A 2014-15 government survey identified 4,038 em
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