Cement Sector Eyes 18% GST in Upcoming Budget
In a strategic push to reduce costs and stimulate growth in the cement industry, JK Lakshmi Cement has advocated for a reduction in the Goods and Services Tax (GST) on cement from 28 percent to 18 percent. This demand, articulated by Arun Shukla, the President and Director of JK Lakshmi Cement, highlights the pressing need to enhance cement consumption, which is considered vital for the development of India’s infrastructure.
With the country witnessing an increasing demand for cement, particularly driven by large-scale infrastructure projects, the cement industry is grappling with the high taxation on this essential material. According to Shukla, a reduction in GST could significantly lower the cost of cement, thereby making it more accessible for builders and consumers, and potentially fuelling a greater push towards the construction of vital infrastructure across the country. Shukla pointed out that cement is integral to building world-class infrastructure and, by extension, plays a key role in supporting India’s economic growth. He emphasised that cement concrete roads, which last longer and incur lower long-term maintenance costs, are a perfect example of where such policy changes could lead to substantial savings.
Reducing the tax burden could not only encourage the use of cement in more projects but also align with the government’s vision for sustainable and economically viable development. JK Lakshmi Cement, which currently has an annual capacity of 18 million tonnes, is also planning an expansion to 30 million tonnes by 2030, in line with the expected growth in demand, which is projected to rise at an annual rate of 7-8 percent. In such a scenario, lowering GST on cement could provide a much-needed incentive to boost production and consumption, ensuring that the sector remains competitive and efficient. As the industry continues to call for policy intervention in the upcoming Budget, stakeholders are hopeful that this step could lead to a more robust and affordable cement market, positioning India’s infrastructure development for a sustainable future.
