{"id":11479,"date":"2026-11-06T19:40:25","date_gmt":"2026-11-06T19:40:25","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=11479"},"modified":"2026-11-06T20:01:43","modified_gmt":"2026-11-06T20:01:43","slug":"gst-registration-for-scrap-dealers","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/","title":{"rendered":"GST Registration for Scrap Dealers"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-11487\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/11\/1775106107413.jpg\" alt=\"GST Registration for Scrap Dealers\" width=\"800\" height=\"800\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/11\/1775106107413.jpg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/11\/1775106107413-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/11\/1775106107413-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/11\/1775106107413-768x768.jpg 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6aee3684e4a3e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6aee3684e4a3e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#GST_Registration_for_Scrap_Dealers\" title=\"GST Registration for Scrap Dealers\">GST Registration for Scrap Dealers<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Background\" title=\"Background\">Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Position_Prior_to_Amendment\" title=\"Position Prior to Amendment\">Position Prior to Amendment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Position_After_Amendment\" title=\"Position After Amendment\">Position After Amendment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#GST_Registration_Threshold\" title=\"GST Registration Threshold\">GST Registration Threshold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Registration_Impact\" title=\"Registration Impact\">Registration Impact<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#GST_Liability_Matrix_for_Scrap_Transactions\" title=\" GST Liability Matrix for Scrap Transactions\"> GST Liability Matrix for Scrap Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Meaning_of_FCM\" title=\"Meaning of FCM\">Meaning of FCM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Meaning_of_RCM\" title=\"Meaning of RCM\">Meaning of RCM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#GST_TDS_Applicability_on_Scrap_Purchases\" title=\"GST TDS Applicability on Scrap Purchases\">GST TDS Applicability on Scrap Purchases<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Scrap_Categories_Covered_Under_RCM\" title=\" Scrap Categories Covered Under RCM\"> Scrap Categories Covered Under RCM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Used_Cooking_Oil_RCM_from_01-Nov-2026\" title=\" Used Cooking Oil (RCM from 01-Nov-2026)\"> Used Cooking Oil (RCM from 01-Nov-2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Plastic_Waste_Scrap_RCM_from_01-Nov-2026\" title=\" Plastic Waste &amp; Scrap (RCM from 01-Nov-2026)\"> Plastic Waste &amp; Scrap (RCM from 01-Nov-2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Tyre_Waste_Rubber_Scrap_RCM_from_01-Nov-2026\" title=\" Tyre Waste &amp; Rubber Scrap (RCM from 01-Nov-2026)\"> Tyre Waste &amp; Rubber Scrap (RCM from 01-Nov-2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#E-Waste_RCM_from_01-Nov-2026\" title=\" E-Waste (RCM from 01-Nov-2026)\"> E-Waste (RCM from 01-Nov-2026)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Metal_Scrap_RCM_from_10-Oct-2024\" title=\" Metal Scrap (RCM from 10-Oct-2024)\"> Metal Scrap (RCM from 10-Oct-2024)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Scrap_Categories_NOT_under_RCM\" title=\" Scrap Categories NOT under RCM\"> Scrap Categories NOT under RCM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Categories_Remaining_Under_Forward_Charge_Mechanism_FCM\" title=\"Categories Remaining Under Forward Charge Mechanism (FCM)\">Categories Remaining Under Forward Charge Mechanism (FCM)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Practical_Compliance_Checklist_for_Scrap_Dealers\" title=\" Practical Compliance Checklist for Scrap Dealers\"> Practical Compliance Checklist for Scrap Dealers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-registration-for-scrap-dealers\/#Important_caution_to_be_taken_care_of\" title=\"Important caution to be taken care of\u00a0\">Important caution to be taken care of\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"GST_Registration_for_Scrap_Dealers\"><\/span><span style=\"color: #000080;\"><strong>GST Registration for Scrap Dealers<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Background\"><\/span><span style=\"color: #000080;\"><strong>Background<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<p>Recent GST amendments have significantly changed the compliance framework applicable to scrap dealers. Earlier, businesses engaged exclusively in reverse charge supplies of metal scrap were generally exempt from GST registration under Notification No. 5\/2017-Central Tax. However, with the implementation of Reverse Charge Mechanism (RCM) on various categories of scrap and waste products, taxpayers must carefully evaluate their registration requirements and GST liability.<\/p>\n<p>The Government has expanded the RCM framework beyond metal scrap and, effective from <strong>1 November 2026<\/strong>, has included additional categories such as Used Cooking Oil, Plastic Scrap, E-Waste, and Tyre Waste &amp; Scrap. Businesses dealing in such products should review their GST registration position and compliance obligations.<\/p>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Position_Prior_to_Amendment\"><\/span><span style=\"color: #000080;\">Position Prior to Amendment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under Section 23(2) of the CGST Act, the Government may exempt certain categories of persons from obtaining GST registration.<\/p>\n<p>Accordingly, persons engaged exclusively in supplies liable to tax under Reverse Charge Mechanism (RCM) were exempted from GST registration under Notification No. 5\/2017-Central Tax.<\/p>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Position_After_Amendment\"><\/span><span style=\"color: #000080;\">Position After Amendment<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With the introduction of RCM on additional categories of scrap products, taxpayers dealing in the following items must examine the nature of their supplies:<\/p>\n<ol>\n<li>Used Cooking Oil<\/li>\n<li>Plastic Waste &amp; Scrap<\/li>\n<li>E-Waste<\/li>\n<li>Tyre Waste &amp; Scrap<\/li>\n<li>Metal Scrap<\/li>\n<\/ol>\n<p>Where supplies are exclusively covered under RCM notification, GST registration may not be required.<\/p>\n<p>However, where supplies are not exclusively covered under RCM, taxpayers must evaluate the aggregate turnover threshold and determine registration liability accordingly.<\/p>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"GST_Registration_Threshold\"><\/span><span style=\"color: #000080;\">GST Registration Threshold<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For suppliers dealing in goods:<\/p>\n<ul>\n<li>GST Registration Threshold Limit: INR 40 Lakhs Aggregate Turnover per Financial Year<\/li>\n<li>If the taxpayer supplies items not covered fully under RCM, normal registration provisions will apply.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Section 23(2) of the CGST Act empowers the Government to exempt specified persons from GST registration. Based on this power, Notification No. 5\/2017 was issued for persons making only supplies taxable under RCM. Later amendments changed the treatment of scrap dealers. following key changes<\/p>\n<ul>\n<li><strong>Metal Scrap RCM introduced<\/strong> from 10-Oct-2024 through Notification 24\/2024.<\/li>\n<li><strong>New categories added from 01-Nov-2026<\/strong> through Notification 6\/2026:\u00a0Used Cooking Oil,\u00a0Plastic Waste &amp; Scrap,\u00a0E-Waste and\u00a0Tyre Waste &amp; Scrap<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Registration_Impact\"><\/span><span style=\"color: #000080;\"><strong>Registration Impact<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>Case A: Dealer deals ONLY in specified RCM scrap items<\/strong><\/span><\/p>\n<p>If the dealer supplies only the notified scrap items on which GST is payable under RCM, registration exemption may continue to apply, subject to satisfaction of conditions under the notification.<\/p>\n<p><span style=\"color: #000080;\"><strong>Case B: Dealer deals in RCM items + other normal taxable goods<\/strong><\/span><\/p>\n<p>Registration threshold must be checked. GST registration becomes mandatory once turnover exceeds the threshold.<\/p>\n<p>Turnover Threshold: For goods, the threshold mentioned in the document is \u20b940 lakh aggregate turnover in a financial year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_Liability_Matrix_for_Scrap_Transactions\"><\/span><span style=\"color: #000080;\"><strong> GST Liability Matrix for Scrap Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The document explains GST treatment based on seller and buyer status.<\/p>\n<table style=\"height: 362px;\" width=\"824\">\n<tbody>\n<tr>\n<td><strong>Supplier<\/strong><\/td>\n<td><strong>Buyer<\/strong><\/td>\n<td><strong>GST Applicability<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Unregistered<\/td>\n<td>Unregistered<\/td>\n<td>No GST<\/td>\n<\/tr>\n<tr>\n<td>Unregistered<\/td>\n<td>Registered<\/td>\n<td>RCM @ 18%<\/td>\n<\/tr>\n<tr>\n<td>Registered<\/td>\n<td>Unregistered<\/td>\n<td>FCM @ applicable rate<\/td>\n<\/tr>\n<tr>\n<td>Registered<\/td>\n<td>Registered<\/td>\n<td>FCM @ applicable rate<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Meaning_of_FCM\"><\/span><span style=\"color: #000080;\"><strong>Meaning of FCM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Forward Charge Mechanism Supplier Raises tax invoice, Collects GST, Deposits GST with Government and Reports in GSTR-1 and GSTR-3B<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Meaning_of_RCM\"><\/span><span style=\"color: #000080;\"><strong>Meaning of RCM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Reverse Charge Mechanism : Recipient:<\/p>\n<ul>\n<li>Pays GST directly to Government<\/li>\n<li>Claims ITC subject to eligibility<\/li>\n<li>Supplier normally does not collect GST from buyer<\/li>\n<\/ul>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"GST_TDS_Applicability_on_Scrap_Purchases\"><\/span><span style=\"color: #000080;\">GST TDS Applicability on Scrap Purchases<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where scrap is supplied by a registered supplier to specified registered recipients, GST-TDS provisions may become applicable.\u00a0Under Section 51, GST-TDS provisions may apply. According to the chart\u00a0 <strong>Who deducts?<\/strong><\/p>\n<p>Recipient\/Buyer.\u00a0<strong>Rate<\/strong><\/p>\n<ul>\n<li>IGST = 2%<\/li>\n<li>CGST = 1%<\/li>\n<li>SGST = 1%<\/li>\n<\/ul>\n<p>Total = 2% GST-TDS.<\/p>\n<ul>\n<li>Time of Deduction: At the time of payment.<\/li>\n<li>Threshold: Contract value exceeds INR 250,000.<\/li>\n<li>Registration: GST-TDS registration required where applicable.<\/li>\n<li>Return: GSTR-7 to be filed by the 10th of the next month.<\/li>\n<\/ul>\n<div class=\"___5wvz9a0 ftgm304 f1oy3dpc fm6nont f48hbct\" tabindex=\"-1\" role=\"presentation\" data-stable-ignore=\"true\" data-tabster=\"{&quot;restorer&quot;:{&quot;type&quot;:1}}\" aria-expanded=\"false\" data-fui-focus-visible=\"\">\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___nvz3nv0 f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 f1y24664 f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 281px;\" width=\"784\">\n<tbody>\n<tr>\n<th>Particulars<\/th>\n<th>Details<\/th>\n<\/tr>\n<tr>\n<td>Person liable to deduct TDS<\/td>\n<td>Buyer \/ Recipient<\/td>\n<\/tr>\n<tr>\n<td>TDS Rate<\/td>\n<td>2% (1% CGST + 1% SGST) or 2% IGST<\/td>\n<\/tr>\n<tr>\n<td>Time of Deduction<\/td>\n<td>At the time of payment<\/td>\n<\/tr>\n<tr>\n<td>Threshold Limit<\/td>\n<td>Contract value exceeding \u20b92,50,000<\/td>\n<\/tr>\n<tr>\n<td>GST TDS Registration<\/td>\n<td>Required<\/td>\n<\/tr>\n<tr>\n<td>TDS Return<\/td>\n<td>GSTR-7<\/td>\n<\/tr>\n<tr>\n<td>Due Date<\/td>\n<td>10th of Next Month<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Scrap_Categories_Covered_Under_RCM\"><\/span><span style=\"color: #000080;\"><strong> Scrap Categories Covered Under RCM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\">The document divides scrap into notified and non-notified categories.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Used_Cooking_Oil_RCM_from_01-Nov-2026\"><\/span><span style=\"color: #000080;\"><strong> Used Cooking Oil (RCM from 01-Nov-2026)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examples: Restaurant frying oil, Hotel used cooking oil, Catering used oil, Used vegetable oil and Biodiesel feedstock oil\u00a0 HSN: 151800.<\/p>\n<p><strong>Important Exception :\u00a0<\/strong>Industrial lubricating oil and engine waste oil (HSN 271099) remain under FCM, not this RCM category.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Plastic_Waste_Scrap_RCM_from_01-Nov-2026\"><\/span><span style=\"color: #000080;\"><strong> Plastic Waste &amp; Scrap (RCM from 01-Nov-2026)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examples: PET bottle scrap, HDPE drum scrap, LDPE bag scrap, Broken toys. Broken buckets, PVC pipe scrap, PP woven bag scrap, Mixed packaging waste, ABS engineering plastic scrap,<\/p>\n<p>GST Rate: 18%.<\/p>\n<p><strong>Exception\u00a0<\/strong>Reusable plastic drums, crates and similar usable goods are treated as normal goods and remain under FCM.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tyre_Waste_Rubber_Scrap_RCM_from_01-Nov-2026\"><\/span><span style=\"color: #000080;\"><strong> Tyre Waste &amp; Rubber Scrap (RCM from 01-Nov-2026)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examples: Tyre cuttings, Shredded tyre scrap, Rubber granules, Tractor tyre dismantling scrap, Car tyre scrap andBus tyre scrap<\/p>\n<p>GST Rate: 18%.<\/p>\n<p><strong>Not Covered :\u00a0<\/strong>Usable tyres and retreaded tyres remain under FCM.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"E-Waste_RCM_from_01-Nov-2026\"><\/span><span style=\"color: #000080;\"><strong> E-Waste (RCM from 01-Nov-2026)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examples: Laptop scrap, Desktop scrap, PCB scrap. Motherboard scrap, Mobile scrap, Printer scrap, Scanner scrap, Refrigerator scrap, AC scrap. Inverter scrap, Battery scrap<\/p>\n<p>GST Rate: 18%.<\/p>\n<p><strong>Not Covered :\u00a0<\/strong>Old working products sold as functioning assets generally continue under FCM.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Metal_Scrap_RCM_from_10-Oct-2024\"><\/span><span style=\"color: #000080;\"><strong> Metal Scrap (RCM from 10-Oct-2024)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ferrous Metal Scrap<\/strong><\/p>\n<p>Examples: Iron scrap, Steel scrap, HMS (Heavy Melting Scrap), Cast iron scrap, Stainless steel scrap, Alloy steel scrap, Iron borings, Railway track scrap, Machinery sold as scrap<\/p>\n<p>GST Rate: 18%.<\/p>\n<p><strong>Non-Ferrous Metal Scrap :\u00a0<\/strong>Examples: Copper scrap, Brass scrap, Aluminium scrap, Lead scrap, Zinc scrap, Tin scrap, Nickel scrap and Tungsten scrap<\/p>\n<p>GST Rate: generally 18%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Scrap_Categories_NOT_under_RCM\"><\/span><span style=\"color: #000080;\"><strong> Scrap Categories NOT under RCM<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following continue under the normal forward charge mechanism (FCM).<\/p>\n<p><strong>Paper &amp; Cardboard Scrap<\/strong><\/p>\n<p>Examples: Newspaper waste, Office paper waste, Corrugated box scrap, Kraft paper scrap<\/p>\n<p>Generally taxed at 5%.<\/p>\n<p><strong>Glass Scrap :\u00a0<\/strong>Examples: Broken bottles, Glass cullet<\/p>\n<p>Generally 18%.<\/p>\n<ul>\n<li><strong>Wood Waste :\u00a0<\/strong>Examples: Sawdust, Broken pallets, Fuel wood waste and\u00a0Rate to be verified.<\/li>\n<li><strong>Textile Waste :\u00a0<\/strong>Examples:Cotton waste, Yarn waste, Textile rags, Synthetic waste and\u00a0Usually under FCM.<\/li>\n<li><strong>Leather Waste :\u00a0<\/strong>Waste leather and leather dust.<\/li>\n<li><strong>Furniture Scrap :\u00a0<\/strong>Damaged wooden furniture.<\/li>\n<li><strong>Demolition Debris :\u00a0<\/strong>Construction rubble and demolition waste.<\/li>\n<\/ul>\n<div>\n<h3><span class=\"ez-toc-section\" id=\"Categories_Remaining_Under_Forward_Charge_Mechanism_FCM\"><\/span><span style=\"color: #000080;\">Categories Remaining Under Forward Charge Mechanism (FCM)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The following scrap categories generally continue under normal GST provisions Paper Scrap, Newspaper Scrap, Cardboard Scrap, Glass Scrap, Textile Waste, Wooden Waste, Leather Waste, Construction Debris, Furniture Scrap<\/p>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Practical_Compliance_Checklist_for_Scrap_Dealers\"><\/span><span style=\"color: #000080;\"><strong> Practical Compliance Checklist for Scrap Dealers<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the client is a scrap dealer:<\/p>\n<ul>\n<li><strong>Step-1 : <\/strong>Identify whether the item falls in Metal Scrap, Plastic Scrap, E-Waste, Tyre Scrap, Used Cooking Oil. These are the primary notified RCM categories.<\/li>\n<li><strong>Step-2 : <\/strong>Verify HSN classification before applying GST. Several entries in the document itself are marked &#8220;Verify&#8221;.<\/li>\n<li><strong>Step-3: <\/strong>Check whether the buyer is registered.<\/li>\n<li><strong>Step-4: <\/strong>Determine whether RCM or FCM applies.<\/li>\n<li><strong>Step-5: <\/strong>Check GST registration requirement based on turnover and nature of supplies.<\/li>\n<li><strong>Step-6 : <\/strong>If supplying to Government departments or notified entities, examine GST-TDS applicability.<\/li>\n<\/ul>\n<div><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Important_caution_to_be_taken_care_of\"><\/span><span style=\"color: #000080;\"><strong>Important caution to be taken care of\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The document itself contains a note: &#8220;For information purposes, please verify.&#8221; Some HSN codes, effective dates and GST rates should be cross-checked with the latest notifications, especially the entries relating to Used Cooking Oil, Plastic Scrap, E-Waste and Tyre Scrap introduced from 01-Nov-2026.<\/li>\n<li>As a GST practitioner, I would recommend maintaining a separate master sheet classifying clients into Exclusive RCM scrap dealers, Mixed RCM + FCM scrap dealers, Paper\/Glass\/Textile scrap dealers and Government-supply scrap dealers (GST-TDS exposure), because registration, invoicing and return requirements differ significantly among these categories<\/li>\n<li><span style=\"color: #000080;\"><strong>GST Treatment on Scrap Transactions<\/strong><\/span>\n<div class=\"___5wvz9a0 ftgm304 f1oy3dpc fm6nont f48hbct\" tabindex=\"-1\" role=\"presentation\" data-stable-ignore=\"true\" data-tabster=\"{&quot;restorer&quot;:{&quot;type&quot;:1}}\" aria-expanded=\"false\" data-fui-focus-visible=\"\">\n<div class=\"___1dmoc29 f10pi13n ftgm304 f1enuhaj fdclmfp f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___nvz3nv0 f1ddd56o f16vktn6 f1ahpp82 f11qra4b f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f10ghnd0 f8fmt76 fjvbh62 f1qrqxae f1vw5qpk fc02sbz fxawf59 fymf513 f1aoyrul f1el8yx3 f1pymoxg f1ofu761 f1y24664 f7coize f1794535 f1o0pw0q fbjjl9v fk1v6el f16pyhcb f1ixlhx9 f12zef0i flu5r5u f19haqzy f1owmcxx f1oddm8q f1004tna fcoaxci fh0ee9u f15v23i2 f1dmj53 f1r1gcv9 f14z1veh ffufd3x f1ypplot f1660cg\" style=\"height: 177px;\" width=\"798\">\n<tbody>\n<tr>\n<th>Supplier<\/th>\n<th>Buyer<\/th>\n<th>GST Treatment<\/th>\n<\/tr>\n<tr>\n<td>Unregistered<\/td>\n<td>Unregistered<\/td>\n<td>No GST<\/td>\n<\/tr>\n<tr>\n<td>Unregistered<\/td>\n<td>Registered<\/td>\n<td>RCM Applicable (where notified)<\/td>\n<\/tr>\n<tr>\n<td>Registered<\/td>\n<td>Registered<\/td>\n<td>FCM or RCM as prescribed<\/td>\n<\/tr>\n<tr>\n<td>Registered<\/td>\n<td>Unregistered<\/td>\n<td>Supplier pays GST under FCM<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GST Registration for Scrap Dealers Background Recent GST amendments have significantly changed the compliance framework applicable to scrap dealers. Earlier, businesses engaged exclusively in reverse charge supplies of metal scrap were generally exempt from GST registration under Notification No. 5\/2017-Central Tax. However, with the implementation of Reverse Charge Mechanism (RCM) on various categories of scrap &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1287],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11479"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=11479"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11479\/revisions"}],"predecessor-version":[{"id":11488,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11479\/revisions\/11488"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=11479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=11479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=11479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}