A GST Council meeting has been announced for later this month on Saturday, 18 February. Among other issues, the GST Council will discuss cutting tax rates on cement, as may be recommended by the Fitment Committee. Currently, the highest tax slab for cement stands at 28%. Finance Minister Nirmala Sitharaman will chair the 49th GST Council meeting in New Delhi.
“Finance Minister Nirmala Sitharaman has said the 28% GST on cement needs to be discussed,” Johri told reporters in New Delhi. At a post-budget Confederation of Indian Industry (CII) event, Sitharaman suggested that the GST cut could be a possible step in an effort to lower construction costs and boost growth. She added that the matter will be examined and if required, will be considered for referral to the GST Fitment Committee which looks at the impact of rate changes on various goods.
India is the second largest cement producer in the world and accounts for over 7% of the global installed capacity, according to a report by India Brand Equity Foundation. As India has a high quantity and quality of limestone deposits throughout the country, the cement industry promises huge potential for growth. The research further noted that India’s cement production is expected to increase at a CAGR of 5.65% between FY16-22, driven by demands in roads, urban infrastructure, and commercial real estate. The consumption of cement in India is expected to grow at a CAGR of 5.68% from FY16 to FY22.
Speculations are rife that the GST Council will also discuss a report by the Group of Ministers (GoM) chaired by Meghalaya Chief Minister Conrad Sangma for levying GST on online gaming, casinos, and horse racing. The GoM has yet to arrive at a consensus on the tax principles for these sectors, according to news reports. This GoM report was supposed to be taken up for consideration by the 48th GST Council held on December 17, 2022.