GST Rate on Sale of Scrap Meterials

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GST Rate on Sale of Scrap Meterials

 

Though the sale of scrap or waste materials is liable to tax but the term “Scrap” is nowhere defined under the GST Laws. In such a situation, we can derive the meaning of ‘scrap’ as per the normal business or commerce parlance. As per the business dictionary, “scrap” means “waste that either has no economic value or only the value of its basic material content recoverable through recycling.”

In the erstwhile excise regime, the scrap or waste was subjected to a test of “manufacture” or “marketability” for their taxability. But after the introduction of GST Laws, the waste and scrap don’t have to pass the test of “manufacture” or “mechanical process” or “marketability”. Scrap is a taxable supply under GST.

Description GST Rate HSN Code
Rubber waste, parings or scrap

5%

4004

Plastic waste, parings or scrap

18%

3915

Powders and Granules obtained from waste, parings and scrap of rubber

18%

4004

Hard Rubber waste or scrap

5%

4017

Wood Scrap

5%

4401

Packing cases, Box, Crates, Drums

5%

4415

Paper waste or scrap

5%

4707

Cullet or other waste or scrap of Glass

5%

7001

Asbestos waste

5%

2524

Waste and scrap of precious metal

3%

7112

Pharmaceutical Waste (except Contraceptives)

12%

3006

Municipal waste, sewage sludge, clinical waste

0%

3825

Slag Ash Waste

18%

2621

Vehicle Scrap

18%

7204

MS Scrap of all types

18%

7204

Scrap US Rail

18%

7204

Copper Waste Scrap

18%

7404

Bronze Waste Scrap

18%

7408

Nickel Waste Scrap

18%

7503

Aluminium Waste Scrap

18%

7602

Zinc Waste Scrap

18%

7902

Tin Waste & Scrap

18%

8002

Cermets and articles thereof waste and scrap

18%

8113

E-Waste

5%

85

Waste and scrap of primary Cells primary batteries and electric accumulators

18%

8548

From,

Krishnakant Jakhotia

Mobile No :-9422507911

Email Id :- taxtalknew@gmail.com

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