In the latest bid to secure a lower tax rate on cement, the UP cement traders are now protesting against the higher GST slab rate i.e. 28 per cent on cement against the earlier 18 per cent sales tax.
UP Cement Dealers Association (UPCDA) had also written the letter to the GST council for a consideration into this issue and seeks a lower 18 per cent GST on cement as soon as possible.
Apart from the lower GST rate on cement, the dealer association also demanded a hike in the threshold limit of GST E Way bill from now 50,000 to 1,00,000.
The association stated that the higher GST rates have hampered the cement industry and argued that the cement is not a luxury item and is not eligible to come under the highest slab rate.
The association was quick to involve the Prime Minister Narendra Modi’s scheme of housing for all, in which they mentioned that the GST council must lower the tax rate in a bid to offer houses for poor.
The statement mentioned that “Cement is used in government and public sector projects apart from building roads in the rural areas. The steep cost of cement due to higher taxation also hampers the speed of projects.”
While it is clearly evident that the inclusion of cement in the highest GST slab rate is not at all fair due to its usability in almost all the sector whether it is government, private or for a poor.
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The association has clearly reminded that they would wait for the GST council and the decision taken which will further decide the future course of action on the cement GST rate issue.