GST rationalisation on cement to lower infra project costs, boost cash flows: Industry players

The rationalisation of GST on cement – a key construction material – will help lower capital cost of infrastructure projects and improve cash flows, industry players said. At its 56th meeting on Wednesday, the GST Council approved slashing GST rates on a number of items. On cement, the council recommended the duty to be reduced to 18 per cent from 28 per cent. According to Ashish Suman, Partner, JSA Advocates & Solicitors, “In the medium term these tax cuts will provide a boost to India’s ambitions towards decarbonising its economy, as the reduced GST rates will make the production and supply of such next generation renewable energy parts more cost-effective. This will ultimately lead towards increase in investment and manufacturing activities in the renewable energy space.” Read more