{"id":2756,"date":"2018-04-25T06:06:12","date_gmt":"2018-04-25T06:06:12","guid":{"rendered":"https:\/\/www.gsthelplineindia.com\/blog\/?p=2756"},"modified":"2019-10-31T13:21:59","modified_gmt":"2019-10-31T13:21:59","slug":"impact-of-gst-rate-on-cement-industry","status":"publish","type":"post","link":"https:\/\/www.gsthelplineindia.com\/blog\/2018\/04\/25\/impact-of-gst-rate-on-cement-industry\/","title":{"rendered":"Impact of GST Rate on Cement Industry in India"},"content":{"rendered":"

The Goods and Services Tax (GST) is an indirect tax that is levied on taxable supplies of goods and services. The Indian government officially implemented the GST system on 1st July 2017 on the supplies made in and out of the country. The cement industry is an important backbone of the country\u2019s economy. The implementation of GST which was expected to bring joy to the cement industry in fact brought not much in terms of benefits. Let\u2019s find out how GST impacts the cement industry and the sale, demand and prices of cement<\/strong>.<\/p>\n

VAT on Cement<\/h2>\n

Before GST was introduced, VAT along with service tax, excise duty and some other taxes<\/a> were applicable to the supply of cement products. The overall tax rates on cement, including excise and VAT, was not more than 24-25 per cent under the previous tax regime. As you can assume, this is a comparatively high rate of tax on something too important for people.<\/p>\n

GST Rate on Cement<\/h2>\n

After the introduction of GST, cement and related supplies are now under the ambit of the new tax regime. GST at a fixed rate of 28% is applicable to cement<\/strong>. The tax rate on cement is clearly higher than that in the previous regime. Higher tax rate means increased cost of supply which will in turn increase the cost of infrastructure (properties, etc.).<\/p>\n

Refractory cement along with mortars and concretes now attract tax at flat 18 per cent rate.<\/p>\n