GST on cement may be revised as per Honorable Finance Minister
According to Sitharaman, the government would be prepared for any new shocks brought on by global trends; the minister provides the example of how the Center handled an unexpected rise in fertilizer prices in 2021.
Nirmala Sitharaman, Union Finance and Corporate Affairs Minister, stated on Tuesday that the government will take into consideration revising the 28% Goods and Services Tax (GST) imposed on cement while reiterating that the government will be able to handle any new shocks brought on by external factors.
Is there a budgetary buffer? We have to deal with the situation as it arises, buffer or no buffer,” Ms. Sitharaman said during a conversation with industrialists.
“We did so in the instance of the unexpectedly high fertiliser prices in 2021. However, we didn’t let the farmers down; instead, we increased our imports while leaving them unaffected by the load. She clarified to Confederation of Indian Industry (CII) members that she did not already have a budgetary provision for that.
Vinayak Chatterjee, a veteran of the infrastructure sector, suggested that Ms. Sitharaman take into account lowering the 28% GST imposed on cement, calling it “a bit strange” given that many non-bulk individual purchasers who are unable to receive input tax credits use it.
“On the GST, you are talking about individuals when you say the end user in non-bulk circumstances. Of course, there are bulk examples where projects are being undertaken by the public or private sectors. I get your point. We’ll see. She said, “I’ll look into it with the fitment committee and, if required, bring it before the [GST] Council.
Mr. Chatterjee, who was in charge of the CII mission on infrastructure, trade, and investment, said that lowering the GST on building materials would help reduce the cost of government projects and infrastructure in general, while higher volumes would make sure that revenue growth wouldn’t be affected.