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
