Gst rate on scrap

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 Dear Experts,

Rate of GST on Iron & plastic scrap?

Udaya Chandran

Udaya Chandran (Expert)
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09 January 2018 IGST rate is 18% for iron and 5% for plastic scrap

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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 online

Aashok Kumar Sharma online

(Expert)
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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.

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