GST – What does it Mean for Indian Steel Industry ?

Indian government in a historic moment has rolled out a new tax reform. With a motive of eliminating cascading of taxes, Indian government introduced GST (Goods & Services tax) which aims at ‘one tax one nation’. The tax has come into effect from 01 Jul’17.

Under GST, new key steel making raw material (like iron ore, pellets, coke) have GST rate of 5%. Earlier pellets were subjected to Excise Duty of 12.5% and VAT/CST accordingly.

GST rate on semi-finished steel goods (sponge iron, ingot, billet) has been fixed at 18%.

However other finished steel products (bars, rods, hot rolled & cold rolled coils) will have new GST rate of 18% which were earlier subject to Excise duty of 12.5% and VAT/CST accordingly.

GST tax rate of steel products