Union Budget raises TCS on scrap sales to 2%
pre-market1 source ↓written by the desknot a recommendation
- scrap sales
- 2%
- 1%
India's Union Budget 2026 has increased the tax collected at source (TCS) on scrap sales to 2% from 1%. This change raises upfront cash outflows, particularly impacting small scrap traders and induction furnace (IF) steel producers, who may face short-term cash flow pressure. Market participants expect more cautious buying behavior in the near term due to increased liquidity constraints.
Not investment advice. For informational purposes only.