The Goods and Services Tax Council will likely refer the issue of the reduction of GST rate on cement from the highest slab of 28% to 18% to the Group of Ministers (GoM) on rate rationalisation, but the relief to the sector may come only next year, sources said.
The cement industry and other stakeholders including the real estate firms have been asking for a reduction in the GST rate, which will reduce the cost of not only the construction sector but also lower the cost of infrastructure projects for the government. An increase in construction activities, a labour-intensive sector, will lead to higher cement sales and buoyancy in GST collection, offsetting to a large extent the revenue loss on account of a rate cut, analysts reckon.
Read more at: Financial Experess
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