Cement is the integrally important part of infrastructure development and GST helps in many ways.

1. A research paper on Impact of GST on Indian cement sector
Ayush Srivastava
PGDM,2nd
year ,Asia-Pacific Institute of Management
Introduction
From 1st
July 2017 new tax regime is implemented in India known as GST, it means goods and
service tax. It’s like new face of India that whole world see and a new big step toward development
and end of corruption. GST is multi layered, destination based tax that will be levied on every
purchase. It’s an indirect tax and replaces many indirect taxes. GST levy on manufacturing, sale and
consumption of goods and services. GST is framework of “one nation one tax”. In GST state and
central is amalgamated in single tax. Due to GST cascading effect get removed.
Before GST, tax system we follow is very rigid and difficult to understand. There is large number of
different tax such as central excise duty, service tax, central sale tax, entry tax etc. Due to number of
tax it’s not easy to calculate and due to its complexity its loophole arises and number of taxes can
increase the cost of goods. In older tax system everything is not online such as registration, return,
payment etc.
VAT was calculated on the value of sales of good or services which but with the tax rate that is
already levied on the goods. But it changed to only paying tax on value addition and separately for the
service. With GST coming into the picture the tax will be collected together without separate tax for
goods and services.
This new tax system is like ray of hope for Indian manufacturing industry. It is a brave step taken by
our government.
Now for Indian cement sector, it is second largest in the world after china. We are the one of the
biggest consumer of cement in the world and India is one of the biggest producers of cement in the
world. So we are facing very strict need of this type tax system.
Impact on cement market
• GST rate
Although cement is in highest slab of 28% but this rate is lower than before i.e.
31%.This step is definitely beneficial for the growth of cement sector. Now Cement Company
have extra margin for their customer.
• Intermediaries goods
Now not only cement tax rate get reduced even government reduces the rate of
intermediaries’ product of cement. Let us consider one basic thing use for cement production
is energy and it is produces either by coal or by electricity, government put coal in the lowest
tax rate of 5% and electricity is out of regime of GST. Both steps is highly beneficial for the
cement production, it help in reducing the cost of manufacturing of cement.

2. • Entry taxes
Due to GST whole country is become one nation and for one nation there should be
one tax i.e. GST, under this regime no need to pay different entry taxes at the time of entry of
product in the state. Manufacturer just has to pay tax only one time due to this cost is reduced
and delivery time is reduced because no need to wait for clearance at the border of state.
• Warehouse
Before GST, for waiving different entry Taxes Company have to establish there
warehouse in every state but due to GST no state entry taxes so no need to make warehouse in
every state just make it in centre and supply the product. Warehouse maintenance cost is
getting reduced and this step is again proof cost beneficial.
• Share market
After GST implementation share market show positive trends, large player of
cement sector have shown there positive response on GST. Top 5 player of cement sector (on
the basis of net sales) graph have accelerating growth. Even some company announces the
lower rate of their cement due to GST.
• Plan
Every step taken by government is toward the new horizon of India. Before GST
government announces the different housing policy for the lower income group, government
trying so hard to boost the infrastructure of India, government announces the concrete road
plan these all step are towards the growth of country and cement sector and GST is like add
on with this.
Conclusion
All these moves taken by government have strengthened the cement market. GST
reduced the tax burden on cement, due to this customer also get benefited. Different intermediary
goods used for making cement such as lime stone and coal put in lower tax slab even coal get in
lowest tax slab of 5%.Coal is used as a source of energy for producing cement. Even electricity is out
of GST might be rate have been increases. Due to GST state entry tax are ended now Cement
Company don’t have to make warehouse in every state and result of this there warehouse cost get
reduced. GST is beneficial for both economy and corporations as it will reduce several burdens on
production cost and making exporters more competitive.
Every step taken by government regarding cement show positive effect, every new policy of GST
regarding to cement is help in reducing cost and if we want to fight in this global world we have to
make something our competitive advantage, and by these step, I think cost of manufacturing can use it
as a competitive advantage.
References
Business Standard, Ministry of External Affairs, Ministry of External Affairs (Investment and Technology Promotion Division)
Shefali dani(2016)Impact of GST on Indian economy
Dr. P. Mahender(2017) GST Effect on Manufacturing Industry - India