The Indian Government has said that fixing of the GST rate on coal at 5 per cent will lead to stabilisation of steel prices. As per reports, the GST Council has decided to keep coal in the 5 per cent tax slab under the new sales tax regime against current tax incidence of 11.69 per cent.
Commenting on the issue, Steel Secretary Aruna Sharma told the media, "That (five per cent) is the lowest slab and would amount to stabilisation of steel prices."
“The move will bring down the input cost and would lead to stabilisation of prices, and more and more expansion of steel plants would take place,” the secretary said. According to reports, the steel sector will be benefited from the move.
As per reports, driven by weak demand, companies operating in the steel sector rolled over their prices this month in spite of a cost push.