Union Budget 2025 / Demand to reduce GST on cement from 28% to 18%, this will be the benefit to the industry

Union Budget 2025: Preparations for the General Budget 2024-25 are going on in full swing. Finance Minister Nirmala Sitharaman will present the budget on February 1. Like every time, this time too every sector has many expectations from the general budget. Especially the cement industry has demanded a reduction in the rate of Goods and Services Tax (GST) from the government in the budget this time. Arun Shukla, Chairman and Director of JK Lakshmi Cement, has appealed to the government to reduce the currently applicable 28 percent GST on cement to 18 percent. He says that this will increase the consumption of cement and will accelerate the development of infrastructure in India.

Demand of cement industry: 28 percent GST should be reduced to 18 percent

Outlining the demands of the industry, Arun Shukla said that cement currently attracts the highest GST of 28 percent. This rate is higher than other basic construction materials. He said that the cement industry plays an important role in the development of the Indian economy. The demand for cement is constantly increasing for the construction of world-class infrastructure.

Shukla also said that concrete roads made of cement are more durable and economical than asphalt roads. He stressed that if the government reduces the GST rate, it will give a big boost not only to the industry but also to the country's economy.

Investment of Rs 500 crore in Bihar

JK Lakshmi Cement is going to set up a new manufacturing plant in Madhubani district of Bihar. For this, the company is investing Rs 500 crore. This plant will meet the local demand as well as contribute to regional development. The company has signed a memorandum of understanding (MoU) with the state government.

Arun Shukla informed that the process of land acquisition has been completed and other approvals for the construction of the plant will also be received soon. The company hopes that this plant will be operational within a year. Appreciating the fiscal incentives and cooperation of the Bihar government, he said that the state government has fulfilled its promises.

Expansion target of JK Lakshmi Cement

Arun Shukla informed that the current annual production capacity of JK Lakshmi Cement is 18 million tonnes. The company has set a target to increase its capacity to 30 million tonnes by 2030. For this, additional production capacity expansion of 12 million tonnes is being done in different geographical areas.

He said that setting up the plant in Bihar has been a positive experience for the company. The kind of support they have received from various departments and administration of the state is remarkable. Shukla said that this plant will not only meet the local demand but will also provide employment opportunities in the region.

Expectations from the budget and future plans

The cement industry has many expectations from the upcoming budget. The industry believes that the reduction in GST rate will boost the construction sector. Also, the government's policies towards infrastructure development can further increase the demand for cement.

Companies like JK Lakshmi Cement are strengthening the Indian economy through investment and expansion. Shukla said that if there is policy support from the government, the industry will be able to grow even faster.

Conclusion

The cement industry's demand for a reduction in GST rate from Finance Minister Nirmala Sitharaman is very important. This will not only increase cement consumption but will also accelerate infrastructure development. Investment and expansion of companies like JK Lakshmi Cement will strengthen the Indian economy. The upcoming budget is expected to provide major relief to the industry. Now it will be interesting to see how much importance the government gives to these demands of the cement industry.