Indian Stainless Steel Development Associations (ISSDA) views the forthcoming GST new tax system as good for the industry. While the new tax regime is expected to simplify tax and logistics issues, the stainless industry urged the government to include key inputs such as electricity, furnace oil and natural gas under the GST to help provide the steel industry with a competitive advantage. Additionally, logistics is also expected to reduce significantly with seamless movement of goods across the various states.
The new GST rate for primary stainless steel products have been set at 18 percent while the current rates on these products total 19.5 percent (12.5 excise duty, 5 percent VAT, 2 percent CST).
“GST is a good policy change for the Indian stainless steel industry, which is the second largest in the world,” stated KK Pahuja President of ISSDA.
India’s stainless steel output rose 9 percent from 2015 to 2016 to 3.32 million mt. The steel industry is slated to benefit in general with raw materials such as coal and iron ore in the 5 percent tax bracket from 11.7 percent.
The association expressed concern about the implementation processes, compliance costs in IT network, and other procedures that are yet pending, but supported the new tax regime.