Indian copper producers had urged the government to cut GST on copper products from 18% to 5%, saying the existing rate had locked up more than INR 490 billion in working capital.
Indian copper producers have urged the government to reduce the indirect goods and services tax (GST) on copper products to 5% from 18%, saying the existing rate had tied up more than INR 490 billion (USD 5.11 billion) in working capital.
The petition was submitted to the GST Council on 22 September by Bharat Metal Exchange (BME) and producers including Hindalco Industries, Vedanta Ltd, Kutch Copper Ltd and Hindustan Copper.
The GST Council is chaired by the federal finance minister.
Working Capital Pressure
BME said the 18% GST rate had immobilised working capital during the four-to-five-month processing and conversion cycle. An official said the tax burden had reduced funds available for raw material procurement and other business expenses amid rising copper prices.
Copper producers had also committed INR 440 billion in capital expenditure through 2030, with the investment expected to create about 45,000 jobs, according to the petition.
Rising Copper Demand
The request came as copper prices had increased, with London Metal Exchange copper reaching a record USD 14,875 per metric ton earlier in September.
India, the world’s second-biggest refined copper importer, was expected to rely on imports for 91% to 97% of its copper concentrates by 2047, according to government estimates.
Copper imports had risen 4% to 1.2 million metric tons in fiscal 2025. Government projections put domestic demand at 3 million to 3.3 million metric tons by 2030 and 8.9 million to 9.8 million metric tons by 2047.
