Finance minister Nirmala Sitharaman told the industry that suggestions for lowering the 28% goods and services tax (GST) on cement will be looked into as a step toward easing construction costs.
The minister said this in response to a suggestion made at a post-budget interaction organised by the Confederation of Indian Industry (CII). The industry suggestion was that lowering GST on cement could help both government infrastructure projects as well as projects by the private sector and by individuals.
Sitharaman, who is also the chairperson of the GST Council, said in her response that she has noted the point made by the industry. “Let us have the fitment committee look into it and then if necessary, take it to the (GST) Council,” the minister said.
A fitment committee is a panel of officers that reviews rate revision proposals for the federal indirect tax body before the Council members take them up.
The suggestion comes at a time the Central government has scaled up its capital expenditure from ₹7.28 trillion in FY23 to ₹10 trillion in FY24 in the Union budget presented on 1 February.