Important Points:
1. A reduction in GST rate for construction items like paint, marble, cement, tiles, varnishes and digital cameras is being examined to bring it from 28% to 18% in next meeting of GST Council on 21st July 2018 chaired by Piyush Goyal for the first time.
2.The rates for 176 items including detergents, shampoo and beauty products were reduced from 28% to 18% on 15th November 2017 meeting leaving only 50 items in the highest tax bracket.
3. Reducing the rate from 28% to 18% may result in foregoing revenue of Rs 25 Billion per month. Currently government earns around Rs 60 Billion revenue from cement industry on a monthly basis.
4.For cement purchased by Real Estate players, the GST offset is allowed whereas it is for own construction or to build a factory then no offset is allowed.
5.Therefore there is a case for reduction in rates for cement to boost infrastructure in the country.
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