• Notification Date: 11-02-2023
  • Notification No: N/A

GST Council to decide upon Deduction in Cement Rate on February 18

A team of officials working with India's Goods and Services Tax Council will decide cutting rates for cement on February 18, the chairperson of the Central Board of Indirect Taxes and Customs said on Friday. 
"GST Council to meet on February 18. Fitment Committee will meet to decide on rate reduction on cement as announced by Finance Minister. Currently, there is 28 per cent GST on cement," Vivek Johri, CBIC Chairman said. 

Finance minister Nirmala Sitharaman recently indicated that industry's demand for trimming the 28% goods and services tax levy on cement, a key input for the infrastructure sector, could be taken to the fitment panel under the GST Council. 

"I see your point. Let's say we have the fitment committee look into it and, if necessary, take it to the council," the minister said, responding to a suggestion from the infrastructure industry to lower the GST rate on cement on the grounds that it would lower project costs and spur growth. 
The minister was speaking at a post-budget event organised by industry body CII. 

The 49th meeting of the GST Council is scheduled to be held in New Delhi on February 18, 2023, according to a tweet posted by the council. The GST Council meeting will be chaired by Union Finance Minister Nirmala Sitharaman. 

The 49th GST Council meeting is likely to take up issues relating to taxation on 'pan masala' and 'gutka' companies, setting up of appellate tribunals, and GST levy on online gaming, casino, and horse racing. 
The 48th Meeting of the GST Council was held on December 17, 2022, through video conference, under the chairpersonship of the Union Finance and Corporate Affairs Minister Nirmala Sitharaman. 
It introduced several recommendations related to GST tax rate changes, trade facilitation measures, and measures for streamlining compliance with goods and services tax (GST). 

With healthy demand drivers for cement - urban housing, government's infrastructure and rural development thrust, the industry is expected to close FY23 with a production of 380-390 million ton, said CARE Advisory and Research. 
In a research report, CARE Advisory said that India's cement production is to range between 380-390 million tonnes in FY23, a growth rate of 8-9 per cent year-on-year (yoy). 

In FY22, production of cement was at 356 million tonnes, up 20 per cent yoy as compared with 296 million tonnes in FY21 due to the low base effect, the report said. 
According to the report, India's cement production and consumption both grew by 11 per cent in FY23 (April-November) on a yoy basis, driven by the government's push for infrastructure development and increased real estate activity.