Harsh Shah, Partner & Ruchita Shah, Associate Partner, Economic Laws Practice (ELP) have written an article titled ‘Cut GST on metal scrap’ published by The Hindu businessline. The authors in the article discuss the unorganized and fragmented nature of the scrap industry, and how procurement of metal waste poses several difficulties for the secondary steel manufacturing industry from a GST perspective leading to non-eligibility of input tax credit (ITC) in the hands of the manufacturers creating significant tax costs in the supply chain.
In the next GST council meeting, the proposal of the Ministry of Steel for the reduction of the GST rate or the introduction of a reverse charge mechanism (RCM) may be considered.
Read the full article here: http://bit.ly/3xpf3tm