GST has had its impact on pretty much everything. From taxes to interests and from business to construction, the hold of GST is something that shouldn’t be taken lightly. And during these times it is essential to the effects of GST and how it has impacted the construction industry. There have been various speculations about the reduction of charges for the construction materials.
Let’s have a look at that, shall we?
Reduction The Price Of Construction Materials Can Be A Great Thing
The number of materials might be reduced in the highest slab by the GST council as there were a number of complaints by the finance minister of the state who have put forward an issue that people face hardship due to the 28% levy that is imposed on the common-used product.
Many items like cement, bath fittings and steel products have been kept in the top bracket as stated by the finance ministers to TOI. The main idea was to separate the goods and services into non-merit and merit goods and the non-merit goods were to be kept in the top bracket. The minister said that the block was too big and had to reduce it.
Another finance minister said that the issue will be discussed at the next meeting of the council which is scheduled at Guwahati. It will be seen by the committee if the composition of the scheme can be extended to outward the supply of goods. A turnover of around Rs.20 lakh to Rs 1 crore is allowed by the scheme to the traders, eateries, and manufacturers so as to pay GST at a low rate.
The impact of GST rate reduction on the construction materials will have a beneficial effect on the ongoing and the upcoming projects of construction. People will seriously be benefited from the reduction of the construction.