GST on Scrap 2026: Reverse Charge, Registration, TDS From 1 Nov
Reports say three GST changes for scrap and waste dealers start on 1 November 2026: reverse charge on some purchases from unregistered sellers, no registration exemption for five scrap goods, and GST TDS between registered persons. They were notified on 27 October 2026, and we have not yet read the official text.
What changed
When: 1 November 2026, as reported. Notifications dated 27 October 2026.
| Before | From 1 Nov 2026 (reported) |
|---|---|
| Registration for sellers of used cooking oil, plastic scrap, tyre scrap, e-waste | |
| Could use an exemption from registration if the buyer paid tax under reverse charge | Exemption withdrawn. Registration depends on the normal turnover limit |
| Metal scrap sellers | |
| Already outside the exemption since October 2024 | Same, now covered by the new notification |
| Purchase from an unregistered seller | |
| Reverse charge did not cover these items | Buyer pays GST under reverse charge on the specified scrap goods |
| Purchase between two registered persons | |
| No GST TDS on these goods | GST TDS under Section 51 for the five scrap goods |
What is changing in GST on scrap from 1 November 2026?
TaxGuru (29 October 2026) and Corporate Law Updates both report that the Finance Ministry issued a set of GST notifications dated 27 October 2026 for scrap and waste. They say all three changes start on 1 November 2026.
The three notifications named are Notification 04/2026-Central Tax (Rate) on reverse charge, Notification 06/2026-Central Tax on registration and Notification 07/2026-Central Tax on TDS. Both reports agree on these numbers and on the date.
Which scrap goods are covered?
Both reports say the registration change covers five goods: used cooking oil (heading 1518), waste and scrap of plastics (3915), waste and scrap of tyres (4004), metal scrap (chapters 72 to 81) and electrical and electronic waste (8549).
Corporate Law Updates lists the first four of these, without metal scrap, for reverse charge. TaxGuru does not give a list for reverse charge, so please check the notification before you rely on the list.
Do scrap dealers need GST registration now?
Reports say a seller of these goods could earlier skip registration when the buyer paid tax under reverse charge. That exemption is withdrawn from 1 November 2026.
This does not mean every small seller must register. TaxGuru says the normal turnover limit applies, which is ₹40 lakh for goods in most states and ₹20 lakh in a few states. A person who becomes liable has 30 days to apply. Read our GST registration guide for the fee, documents and steps.
What is reverse charge on scrap and who pays?
Under reverse charge the buyer, not the seller, pays the GST to the government. Reports say it applies when a registered buyer purchases the listed scrap goods from an unregistered seller.
A registered business that buys scrap from small unregistered sellers should add this tax to its monthly returns.
What is GST TDS on scrap purchases?
Reports say Notification 07/2026-Central Tax extends GST TDS under Section 51 to supplies of these goods between registered persons. The reports we read do not agree on a rate or a contract value limit, so we do not give one.
Check the notification text or ask your tax adviser for the rate and the filing steps.
Frequently asked questions
What is the GST change for scrap dealers from 1 November 2026?
Reports say there are three: reverse charge on some purchases from unregistered sellers, no registration exemption for five scrap goods, and GST TDS between registered persons.
Is metal scrap covered?
Both reports put metal scrap under the registration change. Only one report lists the reverse charge goods, and it leaves metal scrap out.
Must every scrap seller register for GST now?
No. Reports say the normal turnover limit applies, ₹40 lakh for goods in most states and ₹20 lakh in a few.
Is this confirmed by the official notification?
Not yet by us. TaxGuru and Corporate Law Updates describe the notifications of 27 October 2026. We will update this page when we have read them on the official site.
Kabadi walon ko GST registration karna padega?
Reports ke mutabik purani chhoot 1 November 2026 se hat rahi hai. Registration tabhi jab aapka turnover limit se upar ho. Official notification padhkar hi pakka karein.
Short summary in Hinglish
Reports ke mutabik 27 October 2026 ki GST notifications se 1 November 2026 se kabadi aur scrap par teen badlav aa rahe hain: reverse charge, registration chhoot khatam aur GST TDS. Official notification humne abhi nahi padhi.
