New Delhi: Fixing of the GST rate on coal at 5 percent will lead to stabilisation of steel prices, a top official said on Thursday.
The GST Council today decided to keep coal in the 5 percent tax slab under the new sales tax regime against current tax incidence of 11.69 percent.
Welcoming the decision, Steel Secretary Aruna Sharma told PTI, "That (five percent) is the lowest slab and would amount to stabilisation of steel prices."
The move will bring down the input cost and would lead to stabilisation of prices, and more and more expansion of steel plants would take place, the secretary said.
The steel sector will be benefited from the move, an industry analyst said.
Driven by weak demand, companies operating in the steel sector rolled over their prices this month in spite of a cost push, another analyst said.
A producer said the demand was too weak to pass on any hike in prices of raw material.