India: Chhattisgarh Budget FY16 – VAT reduces to 4%

Today, the Chief Minister of Chhattisgarh (CG), Dr. Raman Singh has presented budget estimate of INR 547.10 billion for FY16. The key highlights of the budget is described below.

CG Budget 2015-16 Highlights for Steel Industry

1. VAT is reduced to 4% from 5% on re-rolled products such as TMT, Structure, Wire, Round, Flat, and Pipes
2. CST is reduced to 1% from 2% on Ferro alloys. CG has Ferro alloy capacity of 0.75 MnT, out of the total capacity of 3.7 MnT in India. It will surely benefit the CG based Ferro alloy industry
3. CST remain unchanged at 2% on Steel products
4. INR 3.75 billion package is provided to CSEB (Chhattisgarh State Electricity Board) as an offset not to increase electricity rates

Note: This will be applicable from 1 Apr, 2015