CBIC Amends GST Registration Exemption for Scrap Suppliers from 1st Nov 2026

The Central Government has issued Notification No. 06/2026-Central Tax dated October 27, 2026, amending Notification No. 5/2017-Central Tax to revise the list of goods for which the exemption from GST registration is not applicable.

The amendment has been introduced under Section 23(2) of the Central Goods and Services Tax (CGST) Act, 2017, on the recommendations of the GST Council. It specifically excludes suppliers dealing in five categories of goods from the benefit of the exemption provided under the principal notification.

The changes will come into effect from November 1, 2026.

GST Registration Exemption: Five Categories of Goods Excluded

Through Notification No. 06/2026-Central Tax, the Government has substituted the existing proviso in Notification No. 5/2017-Central Tax dated June 19, 2017.

As per the amended proviso, the exemption provided under the principal notification will not apply to persons engaged in the supply of the following goods:

These classifications are based on the First Schedule to the Customs Tariff Act, 1975.

What Does the Amendment Mean for Businesses?

The amendment is relevant for businesses engaged in the supply of used cooking oil, plastic waste, tyre scrap, metal scrap and electrical and electronic waste.

Such suppliers will no longer be able to rely on the exemption available under Notification No. 5/2017-Central Tax in respect of these specified goods.

Businesses dealing in these categories should review their existing GST registration status and assess their registration requirements in light of the amended notification.

It is important to note that the notification specifically removes the applicability of the exemption under Notification No. 5/2017-Central Tax for the listed goods. It does not, by itself, prescribe a separate registration threshold or independently determine the registration liability of every supplier. Other applicable provisions of the CGST Act and relevant notifications will also need to be considered.

Effective Date of the GST Amendment

Notification No. 06/2026-Central Tax has been issued by the Ministry of Finance (Department of Revenue), Government of India, on October 27, 2026.

The amendment will become effective from November 1, 2026.

Notification Details

The principal Notification No. 5/2017-Central Tax was originally issued on June 19, 2017, and was last amended by Notification No. 24/2024-Central Tax dated October 9, 2024.