FM signals readiness to review 28% GST on cement

Govt. will cope with whatever fresh shocks that may emerge due to global developments, says Sitharaman; Minister cites example of manner in which Centre coped with unexpected jump in fertiliser prices in 2021

Updated - February 07, 2023 09:55 pm IST

Published - February 07, 2023 09:49 pm IST - NEW DELHI 

 Union Finance Minister Nirmala Sitharaman. File.

Union Finance Minister Nirmala Sitharaman. File. | Photo Credit: PTI

The government will consider a review of the 28% Goods and Services Tax (GST) levied on cement, Union Finance and Corporate Affairs Minister Finance Minister Nirmala Sitharaman said on Tuesday, while asserting that the government will cope with whatever fresh shocks that may emerge from global factors. 

“Is there a buffer in the Budget? Buffer or no buffer, we have to face the situation as it arises,” Ms. Sitharaman said at an interaction with industrialists. 

“We did so in the case of fertiliser prices in 2021 which rose out of nowhere. But we didn’t let the farmers down, we imported as much and more, and also didn’t shift the burden on the farmers. It was not that I had a provision [in the Budget] for that already,” she pointed out to Confederation of Indian Industry (CII) members. 

Responding to a suggestion by infrastructure sector veteran Vinayak Chatterjee to consider a reduction in the 28% GST levied on cement, which he termed “a bit unnatural” as it is used by many non-bulk individual buyers who are unable to access input tax credits, Ms. Sitharaman responded positively. 

“On the GST, the end user in non-bulk cases… you are talking about individuals. Bulk cases, of course, it can be government or private sector undertaking projects. I see your point. Let’s see. I will have the fitment committee look into it and then, if necessary, take it to the [GST] Council,” she replied.   

Mr. Chatterjee, chairman of the CII mission on infrastructure, trade and investment, had emphasised that lowering GST on the building material would help reduce the cost of government projects as well as infrastructure in general, while higher volumes would ensure revenue buoyancy was not affected. 

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.