Effects of GST on the Steel Industries in India
Indian steel industries have been one of the biggest contributors to India’s GDP (Gross Domestic Product). These industries have given jobs to over 600,000 people while giving rise to 106.1 MT steel consumption. Being the second-largest steel-producing countries in the world, Indian sectors have grown so much with the help of raw materials like iron ores, and cost-efficient laborers residing here. Tax Laws on Raw Materials; Iron & Steel Currently, there are three different laws placed on the manufacturing of Iron and Steel , that have been brought into the highlight. • Excise Duty Taxes at 12.5% • Average VAT at 5% • CST (Central Sales Tax) at 2% This sums up to a total of 19.5% tax that is solely charged on iron and steel. The items that are made from these two materials are also charged under the same tax rate, excluding Punjab, because the tax rate for VAT there is only 2.5%. GST Rates on Products Made from Iron & Steel • Items at 12% GST: Utensils, Animal Shoe Nails...