JK Lakshmi Cement Urges GST Reduction and Policy Support to Boost Cement Demand

JK Lakshmi Cement has implored the maximum GST reduction on cement from 28% to merely 18%, together with policy initiatives to boost demand. On behalf of the growth prospects in the industry, Arun Shukla, who is President and Director at JK Lakshmi Cement, called for government measures to support the sector in the forthcoming Union Budget.

Shukla cited a robust outlook for demand for cement growing at the rates of 7%-8% compounded annually over the years. Cement production across India needs to be ramped up in anticipation of demand. Please note, however, that the GST is too high and acts as a significant deterrent by making cement expensive for the end consumer, especially in rural and semi-urban areas.

“Reducing of GST for cement to 18% would make cement cheaper and provide the much-needed push to construction and infrastructure development,” stated Shukla. He also highlighted the necessity of framing supportive policies to induce investment and increase global competitiveness for the sector.

The cement industry is crucial in nation-building, being engaged substantially in employment and GDP growth. However, taxes continue to be an age-old concern for stakeholders. Removal of GST will suit the backdrop of the government’s focus on infrastructure development and housing programs such as the PMAY, making the price of raw materials affordable.

The industry remains hopeful that its recommendations for inclusion in the Union Budget will materialize into something to wax dynamic and growth-oriented for the cement manufacturing segment.