The Central Board of Indirect Taxes and Customs’ head stated on Friday that the Goods and Services Tax (GST) Council of India will determine whether to reduce tax rates on cement once an expert committee makes its suggestion. Its Chairperson Vivek Johri announced that the fitment committee — which studies the effects of rate adjustments — will convene to debate and complete its report on the reduction of a 28% GST rate on cement, before submitting it to the council.
The GST Council, which is presided over by Finance Minister Nirmala Sitharaman and serves as the last arbiter in such cases, will convene on February 18. Vivek said the agenda for the meeting on February 18 is still being finalised. The 28% GST on cement, according to the finance minister, needs to be reviewed, Johri told reporters in New Delhi.
Nirmala Sitharaman stated a few days ago that the government is looking at the cement industry’s request for a reduction in the GST rate. It is evident from Vivek’s statement that the upcoming GST Council meeting will address this. The introduction of a 28 percent GST raises the price of cement significantly. The government should lower the GST rate on cement, to provide relief to the general populace.
The cement industry claims that it is a common consumer good, they do not receive input tax credits. Contrarily, the commercial sector or governments utilise cement in large quantities and are thus eligible for input tax credits. The business community has argued that lowering the GST rates will help the average person.
The 49th gathering of the GST council has the potential to make a lot of significant choices. A significant announcement is anticipated regarding online gambling tax rates and the GST tribunal. According to CBIC Chairman Johri, a reform to the Finance Act is being considered to exempt small business owners from the requirement to register for GST when conducting online transactions.
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