Skip to main content

Cement rate cut to 18% on the agenda of GST meet

Cement rate cut to 18% on the agenda of GST meet

GST Council will consider a proposal to slash the tax on cement to 18 per cent from 28 per cent at its meeting next week along with a ministerial panel report that proposes a cut in rates in under-construction properties, including affordable homes.
A rate cut in cement to 18 per cent will lead to a loss of Rs 13,000 crore annually to the government.
The Narendra Modi-government is keen to ensure the GST cut actually benefits the end users in terms of lower prices as the Lok Sabha elections loom.
Officials said the GST cut in cement and the panel report were on the agenda of the GST Council meeting on February 20. The Cement Manufacturers Association had been pitching for a cut in the GST to 18 per cent as it would boost infrastructure spending and create jobs, while reducing the costs of buying a house.
While cutting the rates, the council could come out with some guidelines to ensure the manufacturers pass on the benefits of the rate cut to consumers, officials said.
Union minister Arun Jaitley had in a Facebook post said lowering the tax rate on cement was a priority. Cement is the only commodity used by the common man that is taxed at the highest slab.
“Since the government and its agencies are one of the largest consumers of cement, the necessity of passing on GST rate cuts, whenever the rate reduction takes place, could result in some guidelines being issued as part of the rate reduction process,” said M.S. Mani, partner, Deloitte India.
Analysts said cement roughly accounts for a fifth of construction costs, and a 10 percentage point reduction in the tax burden will bring significant relief to buyers. A cut in the GST rate would boost demand and increase revenue collection.

GST Registration, GST return, GST audit, GST refund, GST consultant,
Housing proposals


Labels:

Comments

Post a Comment

Popular posts from this blog

What is GST, GST Registration, GST Return

What is GST? The newly introduced tax which is called GST or Goods and service tax is an indirect tax levied in India on the supply of goods and services and this tax and it is levied at every step in the production process but it means to be refunded to all parties in the various stages of production other than the final consumer. GDT is an indirect tax which is levied on goods as well as services and all the existing state and central indirect taxes are subsumed under the GST . Good And Service Tax (GST) is applicable throughout the country (except Jammu and Kashmir) and it is also referred to as “One Nation One Tax”. A single product is taxed at the same rate in every corner of the country except Jammu & Kashmir this system under. Benefits of GST!                There are some important benefits of GST ΓΌ   Elimination of Multiple Taxes: One of the biggest benefits of GST is it eliminates multiple indirect taxes and all the taxes which currently exist will not be i
Post a Comment
Read more

FM Nirmala Sitharaman busy, GST Council meet pushed back to Saturday

The  GST Council  meeting, which would have taken up the issue of slashing of tax rates for electric vehicles, was on Thursday rescheduled for Saturday. Union Finance Minister Nirmala Sitharaman, the chairman of the Council, was busy with the ongoing Parliament session, officials said. The meeting, which was to be held through a video conferencing, had a single agenda to boost production of electric vehicles (EVs). The agenda included reduction in GST rate from 12 per cent to 5 per cent for electric vehicles and from 18 per cent to 12 per cent for their chargers. It was also to discuss GST exemption on hiring electric buses. All state finance ministers and officials were logged in for 15 minutes for the meeting at 3 pm before being informed of further delay and a possibility of deferment. In fact, a few finance ministers, mostly from Opposition-ruled states, questioned the urgency to call a meeting for a single point agenda. “What was the urgency to call a Council meeting for a
Post a Comment
Read more

GST Notifications, GST Announcements,

There was a lot of outrage recently over two different issues. First was a reduction in monthly GST collection in February 2019 and second was an aspersion over economic growth data. Both these aspersions raised the question of the veracity of economic growth and “vikas” claimed by Prime Minister Narendra Modi. All concerns and aspersions raised may not be fully addressed and some of those concerns on economic growth could possibly be fair and relevant. However, we need a detailed discussion on average daily GST collection data to understand one dimension of economic growth and verify whether the economy is on the right track. Indirect tax collection is a direct indicator of economic activity and a tangible measure of growth. Tax collection data also presents a real understanding of how nominal the economy has grown. Tax collection is a direct reflection of an increase in business activity – be it investment or consumption. On the investment part, with an increase in the purchas
Post a Comment
Read more