After just a day of relief, cement buyers in Himachal Pradesh have been hit by a price hike. A day after cement prices in the state dropped by Rs 35-40 per bag following the Centre’s recent Goods and Services Tax (GST) rate cut, the State Taxes and Excise Department amended the Carriage of Certain Goods by Road (CGCR) tax, raising the levy on cement from Rs 11 to Rs 16 per bag.
The revised rates came into effect across the state on Tuesday.
“The move was aimed at covering the gap that arose after the reduction of GST on cement. Despite the Rs 5 increase, cement will still be available to customers at a lower price compared to September 22,” Harbans Singh Brascon, Special Secretary, Himachal Pradesh State Taxes and Excise Department, said.
The notification issued by the office of Rajesh Sharma, Secretary, Himachal Pradesh, State Taxes and Excise Department, states: “In exercise of the powers conferred by Section 15 of the Himachal Pradesh Taxation (on Certain Goods Carried by Road) Act, 1999, the Governor of Himachal Pradesh is pleased to make the following amendment in Schedule-1 appended to the Act ibid. The rate of tax on commodities — Cement — is Rs 16 per bag of 50 kg.”
A supplier of Ultratech and ACC cement at Bhota in Hamirpur, told The Indian Express that when the GST on a cement bag was reduced from 28 per cent to 18 per cent, it had brought down the price of cement bags from Rs 416 to Rs 389-390. “However, with the state government increasing the CGCR levy, prices have gone up by around Rs 6 for dealers and customers. At present, a cement bag costs Rs 395,” he said. “Despite the Rs 5-6 increase, the price is still lower than it was before September 22, when the revised GST came into effect,” he clarified.
On Monday morning, cement prices had dropped by Rs 35-40 per bag following the GST rate cut, which consumers welcomed as a major relief. However, with the fresh hike of Rs 5 per bag under the revised tax, prices have climbed once again.
As per the new rates, ACC Gold cement will now cost Rs 445 per bag, up from Rs 440; ACC Suraksha cement will rise from Rs 390 to Rs 395; Bangur cement from Rs 380 to Rs 385; and UltraTech cement from Rs 390 to Rs 395 per bag.
Earlier, the CGCR tax in the state was increased from Rs 7.50 per 50 kg bag to Rs 11 per 50 kg bag in September 2023.
Source from: https://indianexpress.com/article/cities/chandigarh/one-day-relief-cgcr-tax-revision-hikes-cement-himachal-10268401/
