Scrap oil

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This query is : Resolved

Sushil Singh Rathore (Querist)

06 March 2014 Dear Sir,

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.

Sushil Singh Rathore

Sushil Singh Rathore (Querist)

13 March 2014 Please resolve my problem.......

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

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?

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