Sri Vijaya Puram, Sept. 5: The Andaman Nicobar Chamber of Commerce and Industry (ANCCI) warmly welcome the 56th GST Council meeting held under the chairmanship of Hon’ble Finance Minister Smt. Nirmala Sitharaman, wherein historic reforms in GST tax rates were announced, providing much-needed relief to the common man, the aspirational middle class, and also facilitating ease of trade under GST.
Since the implementation of GST in July 2017, the people of Andaman & Nicobar Islands—particularly the middle class and the economically weaker sections—have been among the worst affected. Being geographically isolated and dependent solely on sea and air connectivity, all essential commodities have to be imported from mainland India. This involves high transportation costs, often compounded by multiple reshipments to far-flung islands, leading to very high landing costs compared to other parts of the country. Ultimately, when dealers bill these goods to end consumers, GST is levied on the inflated landing cost along with dealer margins, significantly burdening islanders.
For instance, a bag of cement costing approximately ₹250 at the manufacturer’s end on the mainland attracts 28% GST. By the time it reaches the islands, multiple shipments add another ₹170–₹250 per bag in transportation costs. Consequently, islanders end up paying GST of about ₹120–₹140 per bag, whereas consumers in mainland India pay only around ₹50–₹80 per bag.
The decision of the GST Council to reduce the GST rate on cement from 28% to 18% will provide significant relief to our people. A saving of nearly ₹50 per bag will greatly benefit families aspiring to build their own pucca RCC homes from their hard-earned savings.
Similarly, the decision to rationalize GST slabs by reducing the 28% category to 18% and bringing many 12% slab products down to 5% is highly commendable. Furthermore, the exemption or reduction of GST on several essential daily-use items to just 5% is truly a historic and courageous step by the Government of India.
On behalf of ANCCI and the people of Andaman & Nicobar Islands, Dr. K. Chandrasekharan, President ANCCI has extended gratitude to the Hon’ble Prime Minister and his team for taking such bold measures to bring relief to the common man and to promote inclusive economic growth.