Indian EAF-based steel producers have sought a cut in the Goods and Service Tax (GST) from 18 percent to 12 percent on steel scrap after the Ministry of Steel’s recommendation of scrapping the 2.5 percent import duty on steel scrap was ignored in the budget placed before parliament on February 1, a government official said on Monday, February 5.
The official said that the representatives of EAF-based steel producers will be meeting officials of the Ministry of Finance today, February 5, to formally submit a petition for the reduction of the GST.
The EAF-based steel producers have pointed out that both steel scrap and finished steel attract the same GST rate of 18 percent, thereby making secondary steel production uncompetitive compared to BOF-based steel producers and constituting a disincentive for metal recycling.