The Central Board of Indirect Taxes and Customs (CBIC) Chairperson, Vivek Johri, had announced that a committee composed of central and state officers will carefully assess proposals for reducing the tax rate on cement, to be considered by the Goods and Services Tax (GST) Council.
The forthcoming meeting of the GST Council, scheduled for June, was to primarily address legal and tax rate-related matters previously reviewed by the fitment committee. However, it is unlikely that the discussion during the upcoming meeting will cover the topic of reducing the tax rate on cement.
In addition, Mr Johri had highlighted that the Finance Minister has suggested deliberating on the 28% GST levied on cement. The fitment committee was to review this matter and present their recommendations for further discussion within the Council.
The construction industry is advocating for a reduction in the tax rate on cement, as it would contribute to cost savings in projects. This consideration of lowering the GST on cement aligns with India’s current emphasis on infrastructure-led growth.
The government had announced plans to allocate ₹10 trillion in capital expenditure for FY24, aimed at stimulating the economy, generating demand, and fostering job creation.
It should be noted that the delays in implementing the reduction of GST on cement, pose a setback to cement companies.
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