The Goods and Services Tax (GST) Council, which is scheduled to meet on Friday, may not direct a reduction in the tax levied on cement and automobile parts from 28 percent, Business Standard reported, citing a government official.

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The construction and the auto sectors have been facing a slowdown in their businesses and have been seeking a demand boost from the centre.

However, according to the report, a tax reduction on cement and auto parts could mean a revenue hit of Rs 35,000 crore for the government.

"There is no scope for reduction in the GST rate on auto components and cement at this stage as they are big revenue contributors," the government official was quoted as saying in the report.

The official, however, said that the Council will consider reducing tax on EVs to 5 percent from 12 percent.

First Published:Jun 21, 2019 10:35 AM IST