🚨 GST rate on cement might get a cut! 🏗️ Cement's GST could drop from 28% to 18% - a game-changer for home builders.

The demand to reduce cement GST rate to 18% will be discussed at the next GST council meeting. This could be a turning point for the construction industry as home builders currently cannot claim tax credits for cement. But they can for under-construction properties.

Call to slash GST rate on cement to 18 per cent, to be discussed at next GST council meet The demand to reduce the GST rate on cement from 28 per cent to 18 per cent is likely to be referred to the GoM on rate rationalisation at the next meeting of the GST Council.

The GST Council in its July 11 meeting is also expected to name a new convener for the GoM on rate rationalisation following former Karnataka chief minister Basavaraj Bommai ceding that position after the elections in the state.

The Council might reconstitute the GoM with a new convenor, which will be asked to file a report that could be taken only after the general elections next year.

The GST on cement is in the highest slab of 28 per cent, with home builders denied tax credits for the use of the material. Developers get the credit only in the case of under-construction properties.

In construction-completed properties, there is no GST liability, and the tax on raw materials gets embedded into the property’s price