GST on Cement

| | , ,

India currently owns being the second-largest producer of cement in the world. Notably, the government is one of the largest purchasers for this industry, and consequently, all its infrastructural attempts depend on it. Although, cement is perhaps the only stock that is used by the population extensively but attracts taxes of the highest slabs. In this article, we will discuss GST on Cement and also the significance of GST Registration.

Before understanding the method, now you need to assure some facts about the GST (Goods and Services tax).

Understand About GST

GST is an absolute Indirect Tax that has imposed on sale, production, and consumption of goods and services over the nation. It is a separate tax proper for the supply of goods from the operator to the user. GST is applicable only on purpose extension at each stage. Although, GST registration is necessary for registering the business of Cement.

Rate of GST on Cement

Cement is subject to GST at a rate of 28%. Such a high rate of tax is significantly accountable for increasing the cost of the infrastructure sector.

NOTE – GST on Cement categorised under SAC Code 995454 will be taxable at 28% GST

SAC Code applicable for Cement Industry

The following SAC (Service Accounting Code) has established for the different Cement Industry in India.

  • SAC Code 9954 – Refractory cement concretes and mortars applied for constructing industrial furnaces and ovens
  • SAC Code 99545 – Special Trade Construction Services
  • SAC Code 995454– Concrete services

NOTE – Services Accounting Codes (SAC Codes) 995454 is applied for the Concrete services under Goods and Service Tax order. SAC (Services Accounting Code) are used for the classification of the service. This service appears under heading Construction services.

GST on Rental Income

In case, you need any kind of direction related to the GST registration, GST return filing procedure, or any other GST compliance, please feel free to communicate our business advisors at 8881-069-069.

Download E-Startup Mobile App and never miss the most-latest updates associating to your business.


Difference between LLP and Private Limited Company

MSME’s Emergency Credit Line Guarantee Scheme, ECLGS


Leave a Comment