Cement GST Cut: A Catalyst for Infrastructure Growth

The latest decision by the GST Council to cut the tax rate on cement from 28% to 18% is poised to revolutionize the infrastructure sector. Industry insiders have hailed this move as a pivotal step in reducing capital costs and enhancing cash flow in crucial construction projects.

During its 56th meeting, the GST Council approved reductions on several items, with cement being a significant beneficiary. This tax reform, effective from September 22, is anticipated to boost cash flow efficiency and expedite project delivery, according to leaders like Kavita Shirvaikar, MD of Patel Engineering.

The consensus among industry experts is clear: the reduction will unlock working capital, lower construction costs, and promote private sector investment. It aligns with the government's broader infrastructure objectives, potentially making projects more viable and attracting increased participation in public-private partnerships.

(With inputs from agencies.)