GST Cut Brings Relief: Cement to Get Cheaper by ₹40–₹50 per Bag in Himachal Pradesh
Before Diwali, the GST Council took a major step by reducing the tax on cement from 28% to 18%. This move is expected to bring relief to consumers across India, including in Himachal Pradesh, where cement prices have remained significantly higher despite the presence of three major cement factories in the state.
After the new rates come into effect, cement prices in Himachal are likely to decrease by ₹40 to ₹50 per bag. Currently, brands like ACC, Ultratech, and Ambuja are selling cement at rates between ₹420 and ₹485 per bag. With the tax cut, prices may drop by an average of 10%.
Expected New Prices:
- ACC Ordinary Cement: ₹425–435 → ₹382–392
- Ultratech Ordinary Cement: ₹420 → ₹378
- Ambuja Ordinary Cement: ₹430 → ₹387
Interestingly, despite local production, consumers in Himachal have been paying more for cement than those in neighboring states like Punjab. Over the last two years, prices have increased by up to ₹80 per bag.
Besides cement, the GST Council has also reduced tax rates on several other construction materials. Marble, travertine, granite blocks, sand-lime bricks, and stone inlays will now be taxed at just 5% GST, reduced from the previous 12%, making construction materials more affordable.
Public Reactions:
- Satish Thakur, Gram Panchayat Head, Bandla: "Even with factories in the state, we pay more for cement. The tax cut is a welcome relief."
- Suresh Thakur, Social Worker, Bilaspur: "We're building a house — a ₹40-50 drop per bag will save a lot of money. It's a big decision for the common man."
- Vipin Thakur, Government Contractor: "Cement is a major cost in real estate projects. Lower prices will benefit builders and buyers alike."
- Sushil Sharma, Former Panchayat Head, Panjgai: "The tax cut is commendable, but the state government must offer additional relief and ensure factory prices are also regulated."
Conclusion:
The reduction in GST on cement and other building materials is expected to significantly lower construction costs in Himachal Pradesh, offering much-needed relief to middle- and low-income families, especially in hilly regions where transportation adds to the expense.
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