GST rate cut from 12% to 5% poised to brighten India's art landscape

India’s art sector has welcomed the reduction in Goods and Services Tax (GST) on art and cultural goods from 12% to 5%, effective September 22, 2025. Industry leaders believe this move will significantly expand the collector base, making acquisitions more accessible and fuelling broader participation in the market. With Indian art already on an upward trajectory, auction houses and galleries expect the cut to ease buyer costs, improve liquidity, and bring more works into circulation. Experts highlight that the change will especially encourage younger and first-time collectors, further strengthening India’s position in the global art landscape. Recent successes, such as Indian painter and film director Mr. M.F. Husain’s Gram Yatra selling for over Rs. 118 crore (US$ 13.3 million), reflect rising interest and confidence in Indian art.
The art market has grown steadily post-pandemic, clocking a turnover of Rs. 1,279 crore (US$ 144.3 million) in 2023, according to the ‘State of the Indian Art Market Report FY23.’ With increasing wealth, expanding interest beyond metros, and digital platforms opening access, the reduced GST is seen as a catalyst for long-term growth. Galleries and auction houses report a surge in buyer queries, signalling renewed momentum. Industry players believe this reform could trigger a golden era of collecting and patronage, benefitting both artists and collectors.

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