S Gopal Puri
Shimla:
In a move that brings significant relief to home builders, the Centre has slashed the Goods and Services Tax (GST) on cement from 28% to 18%, effective September 22.
Yogesh Puri, a senior tax consultant, said that the decision has had an immediate impact on cement prices, with a 50-kg bag now expected to cost ₹35 to ₹50 less. Until recently, cement bags were selling at around ₹420 to ₹425 in the market. Following the tax cut, prices are projected to come down to the range of ₹380 to ₹390 per bag.
For families planning to build homes, this reduction could ease the financial burden of construction. The impact is especially significant in Himachal Pradesh’s Solan district, home to major cement plants at Darlaghat and Bagga. These factories not only cater to Himachal’s demand but also supply cement to neighbouring states, meaning the effect of the GST cut will be felt more widely.
Industry experts, however, have cautioned that while the tax relief is welcome, the actual benefit to consumers will depend on pricing policies adopted by cement companies. Frequent price fluctuations, they noted, continue to make house construction a costly affair for middle-class families.
“The reduction in GST is a positive step that will bring some relief, but the final burden on households depends on how companies adjust their prices,” Yogesh remarked.
While the government’s move is being seen as a measure to encourage affordable housing and infrastructure growth, observers say that for the common man, building a house remains a dream that is still financially challenging despite the relief.
With cement bags now up to ₹50 cheaper, the construction sector hopes to see improved affordability, though the true impact will unfold in the coming months.
