Gst rate on scrap

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 Dear Experts,

Rate of GST on Iron & plastic scrap?

Udaya Chandran

Udaya Chandran (Expert)
Follow

09 January 2018 IGST rate is 18% for iron and 5% for plastic scrap

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 What will be the rate of GST on electronics scrap (Refrigerator, Television, Washing Machine, Micro-oven, Monitor, Air-conditioner)

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

27 July 2024 ### GST Rate on Scrap

#### 1. **Iron and Plastic Scrap**

**Iron Scrap:**
- **HSN Code:** 7204 (for ferrous waste and scrap, including iron scrap)
- **GST Rate:** **18%**

**Plastic Scrap:**
- **HSN Code:** 3915 (for waste, parings, and scrap of plastic)
- **GST Rate:** **18%**

Both iron scrap and plastic scrap fall under the standard GST rate of **18%**.

#### 2. **Electronics Scrap**

**Electronics Scrap** includes a variety of items such as refrigerators, televisions, washing machines, microwave ovens, monitors, and air-conditioners. The treatment of GST for electronics scrap is generally as follows:

**HSN Code for Electronics Scrap:**
- **HSN Code:** 8548 (for waste and scrap of electrical machinery)
- **GST Rate:** **18%**

**Explanation:**
- **Refrigerators, Televisions, Washing Machines, Microwaves, Monitors, and Air-Conditioners** when considered as scrap (i.e., end-of-life or discarded electronics), typically fall under this classification.
- The GST rate applied to such electronics scrap is generally **18%**. This rate is consistent with the treatment of electronic waste and scrap under the broader classification of waste and scrap materials.

### Summary

- **Iron Scrap:** **18% GST**
- **Plastic Scrap:** **18% GST**
- **Electronics Scrap (Refrigerator, Television, Washing Machine, Microwave Oven, Monitor, Air-Conditioner):** **18% GST**

### Key Points

- **Documentation:** Ensure that all transactions involving scrap are properly documented with correct HSN codes and GST rates.
- **Compliance:** Verify that the scrap classification aligns with the latest GST guidelines and notifications.

### Recommendations

- **Consult GST Professional:** For accurate GST application, especially if dealing with large volumes or specialized types of scrap, consult with a GST professional or tax advisor to ensure compliance with the latest regulations and practices.

By following these guidelines, you can correctly apply GST rates to various types of scrap materials.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now