Survival of SSI Cement Manufacturing units is at stake after 28% GST Rate has been imposed

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Goods & Service Tax will be in force throughout the country from 1st July, 2017 and businessman from all trades and industries are preparing themselves for the same and are also worried to some extent as far its impact on trade and business will be especially for the SSI Sector.

 After the GST Council finalised rates of GST for various Goods & Services on 18th May, 2017 at its Council meet at Srinagar we have been place in 28% of GST Slab. After a detailed and thorough discussion at our meeting with all members we are worried of the same as it would ultimately lead to now tougher competition with Large Scale Plants like Lafarge, ACC, Ultratech, etc. Earlier in Excise we enjoyed exemption till 1.5 Cr sale limit and the same has been abolished under GST. We will under full taxation from the beginning. 

Large Scale Units as mentioned above have clinker manufacturing units and we have to procure the basic raw materials from them which they sell to us after keeping ample profit. We had a suggestion or you can say a demand that atleast SSI Sector Cement units (which purchase clinker and just do grinding) be kept under a different slab on finished product cement say 18% so that we stand in this tough competition under new taxation policy of GST and be able to survive. After full 28% GST taxation on cement SSI Sector cannot compete with those Corporate Giants at all who have full maufacturing facilities even of raw materials and will ultimately succumb a natural death. We should be put under a separate category under Cement sector as we donot produce clinker and are not large integrated units but rely on these Corporate giants for our raw materials for running the industry.

In the last GST Council meeting held on 11th June rates of 66 items were revised and next meeting is on 18th June. In this meeting we request you to kindly put this matter in the council for consideration.

If anything can be done it will have a long fruitful lasting result on SSI Sector which is running a dying race and ultimately lead to closure. We have high expectations from you and your office that you will take utmost initiatives for the same.



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