Tel : 0086-0371-86172891
Tel : 0086-0371-86172891
The Goods and Services Tax (GST) Commission of India has proposed the implementation of a Reverse Taxation Mechanism (RCM) to tax black and non-ferrous metal waste, which could have a significant impact on the country's scrap steelindustry. Under the current system, sellers are responsible for S460 Grade B steel collecting and paying taxes from the government. However, according to the proposed RCM mechanism, buyers will directly bear tax liability. This transformation aims to simplify the tax collection process and curb tax evasion, especially in transactions involving unregistered scrap sellers.
Industry experts point out that the new system may increase the financial burden on some large steel mills that heavily rely on scrap steel, thereby affecting their cash flow and operating costs. These steel mills, as the main S460 Grade B steel buyers in the market, need to adapt to new tax responsibilities.
On the other hand, the simplification measures introduced by the RCM mechanism may encourage more small-scale sellers to enter the formal waste market, thereby overall improving S460 Grade B steel market liquidity and transparency.
