As per the announcement made by India’s Finance Minister Mr. Arun Jaitley in the Budget 2017, ‘the Indian Government is highly focused on absolute development of world-class gigantic infrastructure, affordable housing and roads’.
Regular GST council meetings have now eradicated a number of issues and the tax slab of various goods have been now decreased. At present, only 35 goods, including cement, automobile parts, tires, automobile equipment, motor vehicles, yachts, aircraft, aerated drinks, betting and demerit items like tobacco, cigarette and pan masala, attract the highest GST rate of 28 percent.
But under the effects of newly implemented Goods and Services Tax, cement had been classified under the 28% tax slab. So having been counted under the highest tax slab, it had been affecting all the relevant sectors badly which had been causing the worst impact on the development of the whole infrastructure sector like dams, bridges, housing and roads and many such.
Thus, keeping in view the continuous pitching by the Cement Manufacturers Association for the reduction of the current 28% GST tax slab for cement, the GST council may look to rationalize the current tax slab and shall be decreased to a lower rate of tax slab (assumed to be in and around 18%) in the next meeting of the GST council scheduled on 22nd December 2018.
Decreased GST rate on cement would definitely give a boost to the housing and other construction industry as well as it will have a positive impact on employment generation. However, the Government of India (GST Council) has been taking effective steps regularly to make GST more convenient and rational. Hope this decision will bring a great sigh of relief to citizens.
HostBooks has been supporting thousands of taxpayers across the nation to comply with the newly introduced GST rules and regulations.