Indian Copper Producers Seek GST Cut Amid Record-Price Pressures

Indian copper producers are calling on the government to lower the Goods and Services Tax (GST) from 18% to 5%. The industry is facing significant cost pressures due to record-high copper prices, which have surpassed $14,700 a ton on the London Metal Exchange this month. According to Rohit Pathak, President of the Indian Primary Copper Producers Association, higher working-capital requirements are being felt across the industry, including by primary producers such as Hindalco Industries Ltd.

The upfront tax is borne by primary producers purchasing feedstock for processing, as well as downstream manufacturers buying copper products. The association estimates that a GST cut could unlock around $3.6 billion of capital currently tied up in tax payments. This would be a significant boost to the industry, which is in the midst of a multibillion-dollar investment push.