TNR News Network
Shimla:
Consumers in Himachal Pradesh faced disappointment on Monday (September 22, 2025) night as cement prices were hiked once again, barely 24 hours after a significant drop due to the GST rate cut. The state’s Excise and Taxation Department has revised the tax on cement transportation under the CGCR (Carriage of Goods for Certain Routes) from ₹11 to ₹16 per 50 kg bag, effectively wiping out much of the relief consumers had briefly enjoyed.
The revised rates came into effect across the state from midnight on Monday, leading to immediate price corrections by manufacturers and sellers.
Brief respite followed by a quick blow
Earlier on Monday, cement prices had fallen by Rs 35 to Rs 40 per bag following the Central Government’s decision to reduce GST on cement from 28% to 18%. However, by late evening, the Himachal Pradesh government issued a fresh notification increasing the state-imposed tax by Rs 5 per bag.
As a result, prices of major cement brands have climbed again:
• ACC Gold: Rs 440 to Rs 445 per bag
• ACC Suraksha: Rs 390 to Rs 395
• Bangar Cement: Rs 380 to Rs 385
• Ultratech Cement: Rs 390 to Rs 395
This increase will impact both public infrastructure projects and private construction across the state.
Government cites revenue needs amid fiscal stress
The latest hike was based on a decision taken during the state cabinet meeting on September 15, as per the official notification issued by the Excise Department Secretary. The Sukhvinder Singh Sukhu-led government stated that the revision was necessary to meet the state’s financial requirements and boost internal revenue generation, especially as the state struggles with fiscal challenges.
Notably, while the Centre reduced GST to make cement more affordable, the state government’s move has partially offset the benefit for Himachal’s residents.
Price controversy rekindled
The development has reignited the long-standing debate over cement pricing in Himachal Pradesh. Residents and contractors have often pointed out that cement produced in the state’s own factories, located in Bilaspur and Solan, is sold at lower rates in neighbouring states like Punjab and Haryana, while remaining expensive within Himachal itself.
A cement trader from Shimla said that earlier a standard 50 kg cement bag was selling at Rs 460. After the GST cut, prices dipped to around Rs 430. Now, with the fresh tax, prices are inching back up. He added that manufacturers have responded to the tax revision by increasing rates by Rs 5 to Rs 10 per bag.
The sudden reversal in prices is expected to become a political flashpoint. In the past, both Congress and BJP have used cement pricing as a rallying issue when in opposition. However, in power, both parties have often distanced themselves from pricing decisions, citing market-driven factors.
