GST Rate on Scrap , in the GST Laws, the term “Scrap” has not been defined, the waste and scrap does not have to pass the test of manufacture or mechanical process or marketability in order to be taxable in the GST regime, although It is considered as ‘supply’ in course of business.
the manufacturing units find it to store waste and scrap for a period of one week as any such storage would slow down the production and could be hazardous for the unit. therefor, the manufacturing units have to clear waste and scrap at the certain rate and under certain tariff classification which is a matter of clarification.
While taxability of waste and scrap is no longer factious, finding proper HSN Code (Harmonized System of Nomenclature code ) is definitely a tedious task. The highest GST rate for scraps material is 18%. HSN code is a 6-digit code that categorizes 5000+ products. It is a uniform code which is accepted worldwide.
GST Rate on Scrap Materials with HSN Code as provided the respective chapters
| HSN Code | Description | GST Rate |
| 3915 | Plastic waste, parings or scrap | 18% |
| 4004 | Rubber waste, parings or scrap | 5% |
| 4004 | Powders and Granules obtained from waste, parings and scrap of rubber | 18% |
| 40170020 | Hard Rubber waste or scrap | 5% |
| 4401 | Wood Scrap | 5% |
| 4415 | Packing cases, Box, Crates, Drums | 5% |
| 4707 | Paper waste or scrap | 5% |
| 7001 | Cullet or other waste or scrap of Glass | 5% |
| 2524 | Asbestos waste | 5% |
| 7112 | Waste and scrap of precious metal | 3% |
| 3006 | Pharmaceutical Waste (except Contraceptives) | 12% |
| 3825 | Municipal waste, sewage sludge, clinical waste | 0% |
| 2621 | Slag Ash Waste | 18% |
| 7204 | Vehicle Scrap | 18% |
| 7204 | MS Scrap of all types | 18% |
| 7204 | Scrap US Rail | 18% |
| 7404 | Copper Waste Scrap | 18% |
| 7408 | Bronze Waste Scrap | 18% |
| 7503 | Nickel Waste Scrap | 18% |
| 7602 | Aluminium Waste Scrap | 18% |
| 7902 | Zinc Waste Scrap | 18% |
| 8002 | Tin Waste & Scrap | 18% |
| 8113 | Cermets and articles thereof waste and scrap | 18% |
| 85 | E-Waste | 5% |
| 8548 | Waste and scrap of primary Cells primary batteries and electric accumulators | 18% |
Point to be Note: E-waste means electrical and electronic equipment listed in Schedule I of the E-Waste (Management) Rules, 2016, including the components, consumables, parts and spares which make these products operational.
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