Indian Copper Producers Seek GST Cut Amid Record Prices

Indian copper producers are seeking a reduction in the Goods and Services Tax (GST) on copper products, currently at 18%, to 5%. This comes as record-high prices have significantly increased working-capital requirements for the industry. According to the Indian Primary Copper Producers Association (IPCPA), a lower GST rate could release up to $3.6 billion in working capital across the copper value chain.

The IPCPA is discussing this proposal with the government, citing the example of Hindalco Industries, which has a copper concentrate procurement and processing cycle that can extend to around three months. The industry estimates that funds currently tied up in tax payments could instead be deployed toward capacity expansion and other investments.

India's copper market has become increasingly reliant on imports following the 2018 closure of Vedanta's Sterlite copper smelter, while domestic producers are expanding capacity to meet rising demand. Global refined copper production reached 28.365 million tonnes during November 2024-October 2025, according to the Ministry of Mines.