Cement To Get Cheaper? Fitment Panel To Soon Decide On GST Cut From Current 28%

The 49th meeting of the GST Council, which is chaired by the Union finance minister and comprises representatives of all states and UTs, will take place next week, February 18, in New Delhi. The fitment committee, which comprises revenue officials from the central and state governments, will meet to decide on the rate reduction on cement as announced by Finance Minister Nirmala Sitharaman, CBIC Chairman Vivek Johri said on Friday.

Currently, there is a 28 per cent GST (goods and services tax) on cement.

“Fitment committee will meet to decide on rate reduction on cement as announced by Finance Minister. Currently, there is 28 per cent GST on cement,” said CBIC Chairman Vivek Johri, according to news agency ANI.

On Tuesday, Finance Minister Nirmala Sitharaman said the government could be open to considering a reduction in GST rate on cement, which is 28 per cent currently. Sitharaman’s response came after a suggestion during a CII event.

During its 49th meeting next week, The Council is likely to discuss the report of a Group of Ministers (GoM) on the setting up of appellate tribunals and a GoM report on the taxation of ‘pan masala’ and ‘gutka’ firms. It is also expected to take up the report by another GoM, chaired by Meghalaya Chief Minister Conrad Sangma, on GST levy on online gaming, casinos and horse racing.

These three GoM reports were part of the agenda items in the last GST Council meeting, which was held on December 17, 2022.

The GoM on GSTATs, appellate tribunals, was set up in July under the chairmanship of Haryana Deputy Chief Minister Dushyant Chautala. Once set up, the Goods and Services Tax Appellate Tribunal (GSTAT) will ensure that businesses can approach the Tribunal instead of the high court for many matters.

In the last meeting, the GST Council recommended decriminalising certain offences and bringing down GST on certain items to nil. The three kinds of offences to be decriminalised that have been recommended by the Council are related to — obstruction or preventing any officer in the discharge of his duties; deliberate tempering of material evidence; and failure to supply the information.

During the 48th GST Council meeting, the threshold tax amount limit for launching a prosecution in any criminal offence defined under the GST laws was also increased from Rs 1 crore to Rs 2 crore for all offences, except fake invoices.

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