Ultratech Cement cuts down price
Posted on: 05/Jul/2017 12:25:32 PM
Ultratech Cement from Aditya Birla group has slashed prices by 2 to 3 percent, thus passing on the GST benefit to customers.
Starting from July 1, the company has started supplying new batches of products from its warehouse for new rates.
Speaking about this, the Chief Financial Officer of Ultratech, Atul Daga said the rates will be reduced by 2 to 3 percent. This is due to the slash down of tax by GST. The tax benefits are being passed on to the dealers who will then transfer the same to customers.
Under GST, cement has got 28 percent tax, and in the previous system of taxation, the tax was 30 to 31 percent.
There will be variations in reduction from one state to the other. Whatever is the rate difference, it is calculated for each of the market and the impact is transferred to the new prices. Currently, a 50 kg cement bag is sold for Rs 315 in the national capital.
Asked about the possibility of cement demand after price reduction, he said it totally depends on housing construction and infrastructure development.
There was a slowdown because of tax rate speculations last month. It was a temporary reduction though. This will transform into cumulative purchase, says Daga.
