Finance Minister Nirmala Sitharaman stated at a Confederation of Indian Industry (CII) event that the matter of GST Rate on Cement will be investigated and, if necessary, referred to the GST fitment committee. Let’s read about the latest updates on the 28% GST Rate on Cement which may be revised soon through this article.
Finance Minister Meeting with CII
Finance Minister Nirmala Sitharaman said on Tuesday that the government would consider lowering the 28% Goods and Services Tax (GST) rate on cement. She also stated that due to excellent leadership, the country has been able to obtain petroleum at relatively reduced prices during the current global crisis. She wanted fresh thoughts from India Inc that may serve as a catalyst for more investment.
Plea to Finance Minister to reduce GST Rate on Cement
During a post-budget discussion with CII leaders, the minister stated that the topic of a possible reduction in the GST rate on cement will be investigated and, if necessary, referred to the GST fitment committee.
She was replying to a request that the GST on cement be reduced from the current 28%, which would assist in reducing the cost of building for both public works and private construction activities such as houses.
The government prioritised capex in the FY24 budget, with a special emphasis on infrastructure sectors such as trains and highways.
Impact of Regional Variations on India’s Cement Market: A January 2023 Update
According to IIFL Securities, the monthly average cement price in India was flat in January 2023. Regionally, prices in the Central (+1.6%) and West (+1.1%) markets increased somewhat, while prices in the South and East markets fell by 1.5% apiece, followed by a 1% drop in the North, according to the report.
When asked if the budget had buffers against external shocks, the finance minister replied, “Buffer or no buffer, we will have to handle the situation as it arises.” She went on to say that the government did the same thing with fertiliser prices in 2021.”
“We didn’t let the farmers down; we imported as much as we could. “We also did not put the cost of higher prices onto the farmer,” she said, stressing that an additional provision had been made for it at the outset.
The minister also asked industry to think outside the box in terms of investments and technology, as well as to identify catalysts other than production linked incentives (PLI) for the growth of emerging sectors. She also emphasised that industry must think outside the box and collaborate with start-ups on newer technology.
She also stated that the country’s strong leadership and governance have aided it through this moment of global turbulence and churn by ensuring that fuel costs remain low and exports are not interrupted.
Minister Highlights Shift in Industry; Focus towards Sustainable Development post-Covid
The minister also stated that, following Covid, the industry has begun to look beyond its own sectors for prospects, and is now incorporating Sustainable Development Goals and green technologies into their expansion plans. “Your investment plans are a lot more calibrated and are not only for expansion’s sake but you are looking at technology that will make you consistent with SDG targets. “
“Your expansion cannot be based solely on monetary or demand considerations,” she added, adding that some decisions will take longer to bear fruit. While the government has decreased the corporation tax rate, companies will take time to finalise their development plans as they assess problems such as technology and energy.
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