gst in india  


VAT Service Tax India
Service Tax New Delhi
Central Excise and Service Tax
Service Tax Cenvat
Service Tax Exemption
Service Tax Tribunal

Justification of GST
Preparation for GST
Purchase Tax of GST
GST Rate Structure
VAT at the Central & State level
Goods & Services Tax Model For India
Central and State Taxes under GST
Special Industrial Area Scheme
Inter-State Transactions of Goods
Rules for CGST and SGST
Implementation of GST

Cement Industry - Indian Scenario

The total installed capacity in India as of March 2009 was around 210 million tonnes With almost total capacity utilisation levels in the industry , India is the world's second largest producer of cement after China.

Issues in context of GST:

Electricity Duty: Nearly 85 kwh of Electricity is consumed for producing per ton of Cement.

Electricity attracts levy of Electricity Duty. Presently, set off of Electricity Duty is not available to the producers against their output liability.

The Electricity Duty translates to approx Rs. 30 per MT of Cement’s cost of production.

Proposal: As is evident, Electricity Duty constitutes a significant component in the Cost of Production.

There is a strong case for subsuming Electricity Duty in GST, for meeting the major objectives of GST namely avoiding cascading effect of taxes, simplification and avoiding multiplicity of taxes.

Royalty: Cement manufacturing is mineral based . The major mineral Input is Lime stone.

Approx. 1.3 MT of Limestone is required for production of 1 MT of Cement.

Limestone attracts levy of Royalty which is around Rs. 63 per MT . Presently, set off of Royalty paid on Limestone is not available to the producers against their output liability. The Royalty translates to approx Rs 82 per MT of Cement’s cost of production.

There is a strong case for subsuming Royalty in GST, for meeting the major objectives of GST namely avoiding cascading effect of taxes, simplification and avoiding multiplicity of taxes.

 

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