GST on cement: FM Nirmala Sitharaman makes big statement

GST on cement: Finance Minister Nirmala Sitharaman has hinted that the government could review the GST on cement as a step towards easing construction costs which is currently 28 per cent. Notably, the 49th meeting of the GST Council is slated to meet from February 18 in New Delhi. Speaking at an event of Confederation of Indian Industry (CII) on Tuesday, Sitharaman said that the matter will be examined and if required will be considered for referral to the GST fitment committee.

The committee may take it forward, if they find merit in it, and include it in the next GST Council meeting agenda. The Finance Minister's response came on a suggestion by one of the attendees at CII event. Currently, cement is taxed at the highest slab of 28%.

Besides, the Finance minister asked the Indian industry to partner with startups and use their solutions in developing products. She also sought to know from the captains of the Indian industry to give 'out of the box' ideas on what could act as a catalyst to boost investment.

"I find the pace at which startups and their solutions are moving. Actually, the solutions are for you. But you should move as fast as they do or else you will be where you are and they will find newer industry or business activities for which they will come up with solutions that are lucrative and you are going to be where you are.

"So I would think working together with startups for products... or for technology requirement is the need of the hour and you should now unhesitatingly partner to get that benefit," Sitharaman said at the CII post-budget interaction with CEOs.

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She said for the new sunrise sector, Production Linked Incentive (PLI) scheme can be a good incentive.

"But I also think beyond PLI is there is anything that you think is that one little catalyst which can give you the lead, what is that?" she said.

Sitharaman also urged the industry to think of out-of-the-box investment drawing and technology drawing ideas, and out-of-the-box working together with startups to get solutions.

She said post-Covid the industry has started looking at the India opportunities beyond their own sectors and is calibrating investment plans in line with technology, SDG and sustainability imperatives.

CII President Sanjiv Bajaj said that the balance between fiscal prudence and growth in the Budget is commendable and more so because the balance is based on conservative growth and revenue estimates.

He also praised the government for the various ease of doing provisions in the budget, including the introduction of the Jan Vishwas Bill, using PAN as a common business identifier, the establishment of the Digi-Locker and the second version of the Vivad se Vishwas scheme.

(with PTI inputs)

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