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India: Govt weighing reduction in GST on recycling raw materials
Ferrous scrap
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10 May 2022, 12:58 IST
India: Govt weighing reduction in GST on recycling raw materials

The Ministry of Finance (MoF) assured participants at the recently-held Material Recycling Association of India (MRAI) conference that it will pursue a downward revision in the GST on recycling raw materials from the present 18% to 5%.

Dr Bhagwat Karad, Minister of State, Ministry of Finance, Government of India, assured that he will pursue the matter with the GST department, Ministry of Finance. He was speaking at the 9th Indian International Metal Recycling Conference (IMRC), organized by MRAI in New Delhi recently.

Karad spoke in response to MRAI's proposal for a single window clearance for the recycling industry and revision of GST from 18% to 5% for raw materials in the near future.

Speaking at the same event, Nitin Gadkari, Union Minister of Road Transport and Highways, said the semi-conductor shortage in India can be addressed by scrap processing,

Gadkari further said: "The government is ensuring higher compliance and a simplified process to set up scrap recycling centres through single window clearance. Setting up scrapping centres will help in import substitution. The scrapping policy is designed to invite investments from small or big automobile companies to be a part of this industry."

MRAI members, speaking at the conference, addressed issues like segregation of waste at generation level, usage of a minimum percentage of recyclable scrap in every manufacturing activity in India, setting up of recycling parks/clusters in India and industry status for recycling under the Government of India.

Sanjay Mehta, President, MRAI, said: "The Indian government's policy thrust on the circular economy becomes an important step in acknowledging the power of recycling. With this, we are very confident that 'recovery and reuse of waste' will play a key role in India's growth story at a time when the country is moving towards a manufacturing-intensive green economy."

"There is a need to develop recycling parks and hubs across the country. Most of the developed countries have banned cash transaction of scrap. We can adopt the same as India has its own UPI ecosystem," Mehta said.

He added that MRAI was flagging off a campaign in schools and colleges to create massive awareness regarding recycling.

Amar Singh, Secretary-general, MRAI, said: "The 9th edition of IMRC took place at a key juncture when the Indian eco-system was turning towards e-mobility and people were looking for answers to battery recycling or the correct way to dispose of e-waste."

MRAI also flagged off the #recycling campaign and sought the government's adoption of the cause for mass awareness.

The event drew a roadmap to make India a green superpower by 2030 aligned with the Government of India's ambitious target of producing non-fossil fuel-based energy by this timeline and a reduction by 1 billion tonnes in total projected carbon emissions by 2030.

MRAI is an umbrella organization having under its wings most national, regional trade and all international trade associations. It is the apex organization of the sub-continent, representing the rapidly growing recycling industry.

 

10 May 2022, 12:58 IST
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