GST Council Meeting today! Will the Tax rates of cement be Reduced?:

GST Council Meeting today! Will the Tax rates of cement be Reduced? Relief in GST rates may have to wait. In fact, in case of reduction in the GST rate, the GST Council is apprehensive that it may result in huge loss of revenue. Apart from this, there can be relief on auto sector and millet based products in the GST Council meeting. Let us inform that the 49th meeting of the GST Council is to be held in Delhi on February 18 (Saturday). Know further what other decisions are possible in this meeting. According to information, there is little scope for reduction in GST rates on cement. Reducing the GST rate on cement from 28% to 18% can cause huge losses. According to an estimate, due to reduction in GST rates on cement, there could be a loss of about Rs 16,000 crore in revenue annually. In such a situation, amidst the apprehension of such a huge loss, there is less scope for consensus among the states. However, it is possible to discuss cement in the GST Council meeting.

What other issues were discussed in the GST Council meeting?

Apart from cement, GST rates on millet based products can be reduced from 18% in the GST Council meeting. Apart from this, according to information received from sources, the proposal to increase the cess on Multi Utility Vehicle (MUV) in the auto sector may be postponed. Let us tell you that the compensation cess was to be levied on the MUV at par with the Sport Utility Vehicle (SUV). At present, there is no consensus on this in the fitment committee.

What is the demand of the cement industry regarding GST?

The industry has demanded that the present rate of GST on cement be reduced to 28 per cent. At the same time, the industry has said that cement is a commodity of common people but they do not get ITC i.e. input tax credit. On the other hand, private sector or governments use cement on bulk basis, which gives them the benefit of input tax credit. The industry has demanded that relief should be provided to the common people by reducing the GST rates.