|
|
| |
|
|
Tata Steel can sell Kalinganagar products beyond Odisha-The 18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
6/1/2017 steel expo-metal &metallurgy expo- |
--------------------------------------------------------------------------------------------------------------- |
|
Business Standard reported that the roll out of the Goods & Service Tax scheduled from July 1 this year spells good news for Tata Steel. With the introduction of the new taxation system, the steel firm can sell finished steel products manufactured at its Kalinganagar steel mill in Odisha outside the state.
Tata Steel was bound by a memorandum of understanding signed with the Odisha government in November 2004 to sell finished products from its Kalinganagar products within the state. The restrictive clause, however, was not applicable to exports of finished products outside the country.
Due to lack of demand for its products within Odisha, Tata Steel sorely needed to despatch products to other states where the demand for such finished steel products was robust. Accordingly, Tata Steel had pleaded to the state government to do away with the restrictive clause on sales. But, the state government was dithering on it due to some revenue implications. The proposed roll out of GST would help Tata Steel to overcome this barrier since under GST, the destination principle applies and its the consuming state that gets the tax.
A Tata Steel source said that "Now, we see no hurdle to sell products from out Kalinganagar facility with the announcement of introduction of GST from July 1. The GST roll out will ensure us a seamless transportation of our products. Though we were shipping the products overseas, we preferred to sell more in the domestic market to ensure better margins."
A senior Odisha government official said that "After GST, we have no ground to restrain Tata Steel to sell its products within the state. We would not oppose their sales."
-The
18th China(Guangzhou)Int’l Metal &Metallurgy Exhibition
|
|
|
|
|
