GST cut on cement to boost sector, accelerate infrastructure growth: Industry players

Industry players said on Thursday that the decrease in GST rate on cement would not only support domestic manufacturers, but will also speed up the speed of infrastructure development and catalyze industrial expansion in India.

The Cement Manufacturers Association (CMA) said GST reduction is expected to increase the competition of the Indian cement industry by creating a level sports ground with global peers.

CMA President Neeraj Akhauri said, “For a long time, cement has been taxed on cement between the essential construction material compared to areas such as steel and many other construction input materials. The lowering of this long -lasting discrepancy has ensured equality with other main ingredients.
The GST Council on Wednesday raised the lack of GST on cement from 28 percent to 18 percent.

Welcoming Vikas, Akhauri, who is also the Managing Director, Mr. Cement, said that cement is a basic input material for infrastructure and housing, and the move will promote consumption, increasing the infrastructure including cheap housing, including cheap housing.

Adani Cement, who owns the Ambuja Cements and ACC, said that the reduction in duty on cement will ‘accelerate the country’s infrastructure pipeline, catalyze industrial expansion, and will strengthen India’s march towards a multi-trilian-dollar economy.’ “This improvement is more than a tax rationalization. It is a sign of faith, speed and purpose, ensuring that the next era of India is built on a foundation that is strong, smart and durable,” said Vinod Beauty, CEO of Adani Cement. A progressive policy for cement is therefore a direct investment in India’s future, he said.

“This step further strengthens forward capacity, provides premium and permanent solutions supported by world class R&D, and activates the infrastructure that outlines India’s development story,” Baht said.

According to Grant Thornton Bharat Partner and Tax Dispute Management leader Manoj Mishra, this is a significant structural relief for the real estate sector.

“Construction material is about 30–35 percent of the total project cost in affordable housing, one of the highest cost-intensive components. For developers, this deficiency reduces working capital pressure in a labor-intensive field with tight margin, superior project feasibility and timely execution,” he said.

According to CMA data, the total established capacity of the Indian cement industry is around 700 million tonnes per year (MTPA).

The industry is looking at a phase of consolidation with Aditya Birla Group Firm UltraTech, which has more than 200 MTPA capacity, and Adani group firm Adani Cement, with more than 100 MTPA, is acquiring small companies.

The industry hopes that there has been an increase between 7 to 8 percent in the current financial year, which helps the government’s expenses at infrastructure and rural housing, which has abolished the recession in FY 25.