Jammu, 02-09-2025: A meeting of Office Bearers of the Federation of Industries, Jammu, headed by its Chairman, Sh. Virendra Jain and attended by its Co-Chairmen, Sh. Lalit Mahajan, Sh. S.C. Dutta, Sh.Ajit Bawa, Sh. Jatinder Aul, Sh. Viraaj Malhotra, Secretary General, Sh. Sanjay Langar, and Convener was held today on 02.09.2025 to deliberate on the request to be made to the Hon’ble Finance Minister of India for the reduction of GST on all categories of scraps. The Federation of Industries, Jammu (FOIJ) has strongly advocated for the rationalization of Goods and Services Tax (GST) on all categories of scrap materials, including ferrous and non-ferrous metals, plastics, batteries, and other scrap from the existing 18% to 5%..
The FOIJ highlighted that the current GST rate on scrap materials is leading to widespread tax evasion and the creation of a parallel black money economy. The high tax rate has resulted in the proliferation of fake invoicing, which not only leads to revenue loss for the Govt but also creates and uneven playing field for genuine traders and manufacturers.
By reducing the GST rates on scrap materials to 5%, the Govt. can minimize the incentives for issuing fake invoices, increase tax compliance, and promote the use of domestic scrap. This move would not only benefit the recycling of industry but also contribute to environmental sustainability, reduce import and save foreign exchange.
The FOIJ emphasizes that the recycling industry plays a vital role in the Indian economy, and its growth is crucial for achieving the goals of the National Steel Policy 2017, which aims to increase the share of scrap-based steel production to 40% by 2030. The reduction in GST rates on scrap material would provide a much-needed boost to the industry, enabling it to contribute more effectively to the country’s economic growth and environmental sustainability.
The Federation believes that this rationalization of GST rates would be a significant step towards promoting the growth of industry and economy. It would also demonstrate the government’s commitment to supporting the recycling industry and promoting sustainability.
FOIJ has appealed to the Hon’ble Finance Minister of India to consider this rationalization in the interest of the recycling industry, environmental protection, and the larger vision of “Make in India.” FOIJ also requested Hon’ble L.G., J&K, Sh. Manoj Sinha, Hon’ble Chief Minister, J&K, Sh. Omar Abdullah, and Principal Secretary, Finance, J&K., Santosh D. Vaidya, to take up the matter in the GST Council meeting.