The Role of Cement Industry in Raising the Economy of India After Implication of GST
Keywords:
GST, cement industry, ITC, Indian Economy, FDIAbstract
Cement is widely used in different sectors as a raw material from real estate to infrastructure development whether in the private sector or government sector. Cement production in India is the second-largest in the world after China, with a capacity of around 340 million metric tonnes. One of the reasons why India is in the second position after China is the increase in GST in cement production, where China is paying 9% VAT and India is paying 28% GST on cement. This has an impact on the production of the cement and also the consumers who are buying the cement whether they are individuals or construction companies. The non-availability of Input Tax Credit (ITC) after the implication of GST has a dismissive effect on the construction and real estate companies’ growth and ultimately it affects the end-users or the consumers of cement. The impact of GST can also be analyzed through the decreased rate in FDI also. This study will study the impact of GST on the cement industry and analyze whether the implication of GST in the Indian economy has been increased or not. The findings from the study state that after the implication of GST, private and government sectors are findings new ways for exploring new opportunities.
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