The implementation of the goods and services tax (GST) will bring down the cost of inputs as raw materials like iron ore, manganese and coal have been kept under the lowest slab of 5 per cent, the government said on Tuesday.
“The GST regime is good for the steel team as the goods & services tax rates and slabs for raw materials like iron ore, manganese, coal etc is in the bracket of 5 per cent. The industry will see a reduction in the input cost for steel-making with the implementation of GST,” steel minister Birender Singh said.
Cheaper raw material is the key for the country to achieve a 300-MT steel production target from around 126 MT now. India became the third-largest producer of crude steel in the world in 2015, leaving the US behind and is now on the verge of becoming the second-largest producer toppling Japan. India added 16.5-MT crude steel capacity during the past three years.
Singh said his ministry was aiming to take the exports figures to double digits. In 2016-17 India became net exporter of steel with 8.2 MT of exports, registering a 102 per cent growth over the previous fiscal. During the same year, imports were reduced by 37 per cent to 7.42 MT.
(With inputs from FE)