Shimla, Sept. 28 -- The Himachal Pradesh government has justified its decision to increase cement prices by Rs.5 per bag, arguing that the move is necessary to partially offset the massive financial losses incurred after the Goods and Services Tax (GST) Council reduced tax on cement.

Technical education and town and country planning (TCP) minister Rajesh Dharmani said on Saturday that the GST cut from 28% to 18% has cost the state nearly Rs.1,000 crore in direct revenue loss, hitting the already disaster-battered economy hard. "This decision benefits big states where consumption is higher, but small hill states like Himachal, J&K, Uttarakhand, and those in the Northeast are the worst sufferers," he said.

Dharmani noted that under the VA...