GST on waste sales from food Industries / Hotels
This query is : Resolved
02 June 2023
What is taxability of sale of waste from food industries & statutory reference (like Notification or acr/section) to that?
02 June 2023
No GST payable on Residues and waste sale from the food industries.
Message likes :
1 times
15 June 2023
Sir, Thank You for your reply. Can you please quote HSN Code for the same?
27 July 2024
In the context of GST on waste sales from food industries or hotels, the treatment and HSN codes for different types of waste can vary. Here's a detailed overview:
### GST on Waste Sales
**1. Waste from Food Industries**
- **Food Waste**: Typically, waste from food industries, like vegetable scraps, leftover food, etc., might not be considered a taxable supply if it’s not sold as a separate commodity but disposed of as waste.
- **HSN Code**: For food waste or residues, if they are sold as such, the applicable HSN code generally falls under:
- **HSN Code 2301**: This code is for "Flour, meal, powder, flakes, granules, and pellets of potatoes" which can include processed food waste.
- **HSN Code 2302**: This code is for "Bran, sharps, and other residues" from the milling of cereals.
- **GST Rate**: The rate for such items is often 5% under the HSN code 2301 or 2302, but it is advisable to check the latest GST notifications or consult with a tax expert for the most accurate rate applicable to your specific case.
**2. Waste from Hotels**
- **Hotel Waste**: Waste from hotels, such as food scraps or other waste, is generally considered as waste and not sold as a commodity. If such waste is sold (e.g., to waste management companies or as compost), it might fall under the same HSN codes mentioned above.
- **HSN Code**: Similar HSN codes may apply, such as:
- **HSN Code 2301** or **2302** depending on the nature of the waste.
- **GST Rate**: The applicable rate is often 5%, but again, check the specific GST rules or notifications that apply to waste products.
### Key Points to Remember
1. **Nature of Sale**: If the waste is sold as a by-product or secondary product, GST may be applicable. However, if it is simply disposed of or not sold, GST may not be applicable.
2. **HSN Code**: Use the HSN codes that best describe the nature of the waste. HSN codes like 2301 and 2302 are generally used for waste products from food industries.
**3. GST Rate**:
- **For HSN Code 2301 and 2302**: The GST rate is generally 5%. However, always refer to the latest GST notifications or consult a tax professional for current rates and any exemptions.
### Recommended Actions
1. **Consult GST Notifications**: Refer to the latest GST notifications or consult the GST website to check for any updates or changes in the rate and HSN codes.
2. **Consult a Tax Expert**: For accurate classification and tax treatment, especially if the waste is sold or disposed of in specific ways, consulting a GST expert or tax advisor is recommended.
**Resources**:
- **GST Notifications and Circulars**: Check the [GST Portal](https://www.gst.gov.in/) for the latest updates and notifications.
- **HSN Code Finder**: Use resources like the [HSN Code Directory](https://cbec-gst.gov.in/hsn-scn.html) for more detailed information.
Feel free to reach out for any specific details or further assistance!
### GST on Waste Sales
**1. Waste from Food Industries**
- **Food Waste**: Typically, waste from food industries, like vegetable scraps, leftover food, etc., might not be considered a taxable supply if it’s not sold as a separate commodity but disposed of as waste.
- **HSN Code**: For food waste or residues, if they are sold as such, the applicable HSN code generally falls under:
- **HSN Code 2301**: This code is for "Flour, meal, powder, flakes, granules, and pellets of potatoes" which can include processed food waste.
- **HSN Code 2302**: This code is for "Bran, sharps, and other residues" from the milling of cereals.
- **GST Rate**: The rate for such items is often 5% under the HSN code 2301 or 2302, but it is advisable to check the latest GST notifications or consult with a tax expert for the most accurate rate applicable to your specific case.
**2. Waste from Hotels**
- **Hotel Waste**: Waste from hotels, such as food scraps or other waste, is generally considered as waste and not sold as a commodity. If such waste is sold (e.g., to waste management companies or as compost), it might fall under the same HSN codes mentioned above.
- **HSN Code**: Similar HSN codes may apply, such as:
- **HSN Code 2301** or **2302** depending on the nature of the waste.
- **GST Rate**: The applicable rate is often 5%, but again, check the specific GST rules or notifications that apply to waste products.
### Key Points to Remember
1. **Nature of Sale**: If the waste is sold as a by-product or secondary product, GST may be applicable. However, if it is simply disposed of or not sold, GST may not be applicable.
2. **HSN Code**: Use the HSN codes that best describe the nature of the waste. HSN codes like 2301 and 2302 are generally used for waste products from food industries.
**3. GST Rate**:
- **For HSN Code 2301 and 2302**: The GST rate is generally 5%. However, always refer to the latest GST notifications or consult a tax professional for current rates and any exemptions.
### Recommended Actions
1. **Consult GST Notifications**: Refer to the latest GST notifications or consult the GST website to check for any updates or changes in the rate and HSN codes.
2. **Consult a Tax Expert**: For accurate classification and tax treatment, especially if the waste is sold or disposed of in specific ways, consulting a GST expert or tax advisor is recommended.
**Resources**:
- **GST Notifications and Circulars**: Check the [GST Portal](https://www.gst.gov.in/) for the latest updates and notifications.
- **HSN Code Finder**: Use resources like the [HSN Code Directory](https://cbec-gst.gov.in/hsn-scn.html) for more detailed information.
Feel free to reach out for any specific details or further assistance!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Clarification on Monthly Reset of Invoice Serial Numbers under GST
- Income Tax Return under Old Regime for A.Y. 2025-26
- RENTAL INCOME-GST
- Regarding Confusion in ITC.
- Disturbing entry reflected in AIS increasing scope of notice u/s 69
- Strange tax problem
- HOW TO DOWNLOAD 26AS FOR A.Y. 2007-08.
- TCS on travel expesnes
- Charity and RCM
- GST Registration in two different states is required or not
- Ginning machinery
- GST on Rent of Machine
- Will some one share me the excel for RCM on goods&services along with tax rate and claiming ITC with
- Clarification and Guidance Regarding ASMT-14 Notice and GST Registration Requirement
- GSTR1 query HSN B2C
- GSTR7 VS GSTR3B
- GST ON TRANSPORTATION CHARGES FOR THE TRANSPORTAION OF EXEMPTED PRODUCTS
- Eway bill Query 1
- Clarification Regarding Applicability of GST E-Invoicing
- How to add last year March invoice to current GSTr1 return
Trending Online Classes
-
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools
CA Deepak Gupta15 July 2025
CAclubindia
