Growth for cement industry

The cement industry is headed for a growth in the second half of the fiscal year, FY 18, thanks to the benefits provided by GST. According to the Cement Manufacturers Association (CMA), the government’s increased investment on infrastructure is an added benefit. Due to the elimination of blockage time at state check posts under the GST regime, the logistics cost would come down by 30 per cent, benefiting the industry considerably. Around five per cent reduction in cost on bagged cement being sold in the market has happened under the GST. Loosened cement, sold to the institutional clients, the tax incidence has gone up by around 4 per cent. Both these categories have been placed under the 28 per cent tax slab under GST, which has an added advantage of input tax credit.

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