IMPACT OF GST ON INDIAN STEEL INDUSTRY
JUN 2017 | Vol. V | Issue #12
GST is out of the cocoon; a major opportunity for Steel Industry
A transformation time for Indian tax system GST which was born out of patience & struggle; the uniformed tax system which is expected to roll out on 1st of
July is a turning point in the Indian tax regime. The implementation of GST will bring lot more benefits at the consumer end. The main objective of GST is to
eliminate excessive taxation. In the run-up to one of the biggest tax reforms in the country, the market is abuzz with new rules and guidelines about the Goods
and Services Tax (GST).
Steel industry is likely to benefit from the new GST rate for steel which is at 18%, with key inputs like coal, iron ore marked at 5%, which is the lowest slab
under GST, could help to lower input costs. Together, with a substantial slash in transport costs due to unified and standard tax rate under GST, this is
likely to help steel companies reeling under large debt and also keep steel prices stable. The layers of GST is simplified in an in- depth cover story for our
readers on page-30.
The dragon is on move, China being the number one in iron ore import; is making a significant shift in to scrap export and the presence is felt in the
industry. What will be the outcome? Who will be engulfed by the move of China? A detailed analysis on page-38.
The Steel Users Federation of India (SUFI) contribution to steel industry is unparalleled, addressing critical issues relating to steel users and work as a
catalyst for making policy frameworks there by contributing to the growth of the nation; Mr. Nikunj Turakhia, President, SUFI in an exclusive interview speaks
on the dynamics of steel industry and on overtly protectionism by the government, its outcome on page-16.
A new series on Steel innovation from this issue has began, especially technology used in the industry for making iron nuggets and detailed information on the maximizing high alumina iron ore fines in sintering by our columnist on page-24, 42.