CEMENT FIRMS RETAINED GST BENEFIT, SAYS YES SECURITIES

Yes Securities reports cement companies retained most of the GST benefit, resulting in minimal price reduction for consumers despite the rate cut.

- TBG NETWORK

Cement companies were strategically ‘attempting to pocket the GST benefit intended for consumers, noted Yes Securities in its latest industry updateThe report noted that following the government's decision to reduce the GST on cement from 28 per cent to 18 per cent, effective September 22, expectations were high fora meaningful price reduction at the consumer level.However, channel checks revealed that all-India average cement prices dropped by just Rs 5 per bag on both a month-on-month and quarter-on-quarter basis With the rate cut implemented late in the month, companies adopted a weighted average pricing approach; however, the muted price correction suggests limited pass-through, as manufacturers appeared to retaina significant porti