CEMENT SECTOR ITEM POST GST RATE PRE GST

CEMENT SECTOR : ITEM POST GST RATE (%) PRE GST RATE(%) CHANGES(%) CEMENT 28 30 -2 GST IMPACT ON CEMENT SECTOR: § GST would give benefit of 2% as GST rate of cement was 28% in comparison with old tax rate of 30% and the prices of the cement will go down. § As prices of the cement will fall, consumers will purchase more cement for buildings and roads. Ultimately cement sector will grow as well as Infrastructure sector and real-estate sector will get positive impact from this.

CONT. . . § Ores, which is used as raw material for cement categorized under 5% slab and gave benefit of 13. 5% would positively affected the cement Industry. § Reduction of 9. 5% tax for Petroleum coke (through which cement is pyroprocessed) would be benefited for the cement industry. § Most of the companies have multiple warehouses across the states to avoid CST and state entry taxes. By the implementation of GST, there will no longer necessity of having warehouses in every state. It would save the costs of companies which will impact on cement industry to grow.

ULTRATECH CEMENT. . . § Ultratech Cement Ltd. is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India. It is also one of the leading cement producers globally. Ultratech cement exports over 2. 5 million tones per annum which accounts for 30% of country’s total exports. It exports to countries like Africa, Europe and the Middle East. GST IMPACT ON ULTRATECH CEMENT : § As tax rate for cement has gone down, Ultratech cement has reduced its price of its products by 2 -3% which is up to Rs. 15 per bag. § Due to decline in the price of the products of Ultratech, People will prefer more for this product which will help to increase company’s revenue & Margin and this demand for the cement will occurred from the development of construction and infrastructure sector.