GST Council cuts tax rate on cement to 18% from 28%; cut to accelerate infrastructure growth: Report

The Goods and Services Tax (GST) Council headed by Finance Minister Nirmala Sitharaman decided to cut rates on cement to 18% from 28%. The new rates will come into effect from September 22.

The GST Council headed by Union Finance Minister Nirmala Sitharaman on Wednesday, September 3, unanimously approved overhauling the GST regime. The GST Council approved limiting slabs to 5% and 18%.

GST on cement which attracted a higher rate of 28% was cut to 18% by the GST Council.

GST rate reduction on cement will not only support domestic manufacturers but also accelerate the pace of infrastructure development and catalyse industrial expansion in India, industry players said on Thursday.

A reduction in GST is expected to enhance the competitiveness of the Indian cement industry by creating a level playing field with global peers, said the Cement Manufacturers' Association (CMA).

Adani Cement, which owns Ambuja Cements & ACC, said a reduction in duty on cement will 'accelerate the nation's infrastructure pipeline, catalyse industrial expansion, and strengthen India's march towards a multi-trillion-dollar economy'.

"This reform is more than a tax rationalisation. It is a signal of confidence, momentum, and purpose, ensuring that India's next era of growth is built on a foundation that is stronger, smarter, and sustainable," said Adani Cement CEO Vinod Bahety.