India: TISMA requested to streamline GST on recyclable ferrous scrap

The south India's Telangana Iron and Steel Manufacturers Association (TISMA), represent a group of 40 steel manufacturers based in Telangana having capacity of around 3.6 MnT per annum finished steel production has requested to honourable Finance Minister to reduce GST on scrap from 18% to 5%. It also requested to remit GST payment by Reverse Charge Mechanism (RCM) method.

This means that the GST will have to be paid directly by the receiver instead of the supplier. The registered buyer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. In intra-state purchases, CGST and SGST have to be paid under RCM by the purchaser.