We have Purchased oil (Hi lubricants) on CVD 14% SAD 4%, we have used same oil after used that oil we want to sale on scrap please suggest me rate of Excise duty on Wastage oil sale.
23 July 2025
Regarding **excise duty on sale of scrap/waste oil** (used oil), here’s a brief explanation:
1. **Duty on Purchased Oil:** You paid **CVD 14% + SAD 4%** on the *new* lubricating oil when you purchased it.
2. **Used Oil (Scrap/Waste Oil) Sale:** When you sell used or scrap oil, it generally **does not attract excise duty** because it is considered a *waste product* or *scrap*. Excise duty is applicable on manufacture or production of excisable goods, but scrap or used oil resale is treated differently.
3. **Practical Treatment:**
* No excise duty on sale of used scrap oil, provided it is sold as scrap and not repurposed as lubricants. * You may have to maintain proper records showing that the oil sold is used/waste oil. * GST may be applicable depending on your state and nature of supply (check current GST rates and notifications).
4. **Important:** Please check the latest notifications by **Central Board of Indirect Taxes and Customs (CBIC)** and circulars related to excise and GST, as rates and treatments may change.
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**Summary:** You likely **do not pay excise duty on sale of scrap oil**, but GST may be applicable as per current laws.
Would you like me to help check the latest GST rate or specific notifications related to this?
CAclubindia
