GST Council likely to meet on Feb 20 to discuss cement rate cut
The GST Council is likely to meet on February 20 to discuss a proposal to slash tax on cement to 18 per cent from 28 per cent and also consider a recommendation of a Group of Ministers (GoM) on housing that advocates 5 per cent GST in under-construction properties and 3 per cent GST for affordable housing.
The GoM had earlier recommended 5 per cent GST without input tax credit on under-construction housing and 3 per cent GST without ITC on affordable housing.
A rate cut in cement to 18 percent which is long pending will lead to a loss of Rs 13,000 crore annually to the government but with election drawing closer, the Government is keen to ensure the GST cut benefits the end users in terms of lower prices and low cement prices could lead to low housing costs for the middle class.
The proposed GST cut in cement and the GoM report are on the agenda of the GST Council meeting on February 20, sources said.