GST rates on Cement Articles under Chapter 68- Reduce from 28% to 18%
GST rates on Cement Articles under Chapter 68- Reduce from 28% to 18%
The Issue
Cement made articles are proposed to be taxed at 28% under the newly introduced GST tariff. This is obviously a mistake that needs to be rectified at the earliest.
The 28% slab of tariff is supposed to be for 'Demerit' or 'Luxury' goods.
Cement articles consisting of Tiles, Paver blocks, Hollow and solid blocks, Cement Jaalis, Poles, Door and window frames, lintels and the like, are the CHEAPEST construction material available in the remotest of locations, for the poorest of people in the country. Most of the small customers will not accept a bill if taxed at 28%.
Most cement article manufacturers are very small in size, and provide a large chunk of its employment in remote rural areas. The extremely high rate of taxation has potential to adversely disrupt the small scale industry, and turn upside down an extremely high number of families involved both in the trade as well as in employment.
The sad part is that most substitute products are taxed at much lower rate- almost as if the Cement articles industry is to be neglected and allowed to die its death
Cement products like paver blocks etc are extensively used for construction streets of villages, housing societies, educational institutions, hospitals and the like.They are also playing an important role in the “Swachh Bharat Abhiyaan”.
Another point of note is that even within the chapter 68, different/similar products have been classified at different rates. When there is so much variation in such similar products, there is massive encouragement to misclassification and a lot of evasion, corruption and litigation arises as a result. The concept of one country- one tax is defeated. All similar products MUST be brought under the same tax rate
The solution is to bring the rate of GST down to 18%.
If it is not, the industry will have to grapple with issues such as loss in sales, employment, rise in prices, customers opting for substitutes. We request you to make a serious review on our above petition and come up with a rational solution (18% across all items under the chapter)
The Issue
Cement made articles are proposed to be taxed at 28% under the newly introduced GST tariff. This is obviously a mistake that needs to be rectified at the earliest.
The 28% slab of tariff is supposed to be for 'Demerit' or 'Luxury' goods.
Cement articles consisting of Tiles, Paver blocks, Hollow and solid blocks, Cement Jaalis, Poles, Door and window frames, lintels and the like, are the CHEAPEST construction material available in the remotest of locations, for the poorest of people in the country. Most of the small customers will not accept a bill if taxed at 28%.
Most cement article manufacturers are very small in size, and provide a large chunk of its employment in remote rural areas. The extremely high rate of taxation has potential to adversely disrupt the small scale industry, and turn upside down an extremely high number of families involved both in the trade as well as in employment.
The sad part is that most substitute products are taxed at much lower rate- almost as if the Cement articles industry is to be neglected and allowed to die its death
Cement products like paver blocks etc are extensively used for construction streets of villages, housing societies, educational institutions, hospitals and the like.They are also playing an important role in the “Swachh Bharat Abhiyaan”.
Another point of note is that even within the chapter 68, different/similar products have been classified at different rates. When there is so much variation in such similar products, there is massive encouragement to misclassification and a lot of evasion, corruption and litigation arises as a result. The concept of one country- one tax is defeated. All similar products MUST be brought under the same tax rate
The solution is to bring the rate of GST down to 18%.
If it is not, the industry will have to grapple with issues such as loss in sales, employment, rise in prices, customers opting for substitutes. We request you to make a serious review on our above petition and come up with a rational solution (18% across all items under the chapter)
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Petition created on 6 July 2017