GSTN Issues Advisory for Taxpayers: New GST Provision for Metal Scrap Transactions



Quick Summary
The government has introduced a new GST provision specifically for businesses involved in metal scrap transactions. Effective from October 10, 2024, companies supplying or receiving metal scrap under Chapters 72 to 81 of the Customs Tariff Act will need to comply with Section 51 of the CGST Act, 2017. The GST portal will soon be updated to facilitate registration for these businesses through FORM GST REG-07.

The government has issued Notification 25/2024-Central Tax, on October 9, 2024 under GST Section 51 of the CGST Act, 2017 mandating compliance by businesses dealing with Metal Scrap. The GST portal will soon be updated to enable compliance of registration through FORM GST REG-07 by this category of registered persons.

New GST Rule for Metal Scrap Transactions from Oct 10

Official copy of the notification is as follows

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
No. 25/2024-Central Tax

New Delhi, the 9th October, 2024.

G.S.R. …..(E).— In exercise of the powers conferred by sub-section (3) of section 1 read with section 51 of the
Central Goods and Services Tax Act, 2017 (12 of 2017), hereafter in this notification referred to as the said Act,
the Central Government, on the recommendations of the Council, hereby makes the following further amendment
in the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 50/2018-
Central Tax, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R
868 (E), dated 13th September, 2018, namely:–

In the said notification,

(i) after clause (c) and before the first proviso, the following clause shall be inserted,-

"(d) any registered person receiving supplies of metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), from other registered person";

(ii) for the third proviso, the following proviso shall be substituted, namely-

"Provided also that nothing in this notification shall apply to the supply of goods or services or both, which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of Section 51 of the said Act, except the person referred to in clause (d) of this notification."

2. This notification shall come into force with effect from the 10th day of October, 2024.

[F No. CBIC-190354/149/2024-TO(TRU-II)]
(Amreeta Titus)
Deputy Secretary

Note:- The principal notification no. 50/2018- Central Tax, was published in the Gazette of India, Extraordinary,
Part II, section 3, sub-section (i) vide number G.S.R 868 (E), dated 13th September, 2018 and last amended vide
notification no. 73/2018-Central Tax, number G.S.R 1250(E), dated 31st December, 2018. 

FAQ :

A new provision mandates compliance with Section 51 of the CGST Act, 2017, for registered persons receiving supplies of metal scrap falling under Chapters 72 to 81 of the Customs Tariff Act, 1975, from other registered persons.

This notification comes into force with effect from October 10, 2024.

The rule applies to metal scrap falling under Chapters 72 to 81 in the First Schedule to the Customs Tariff Act, 1975.

The GST portal will be updated to enable compliance of registration through FORM GST REG-07 for the affected category of registered persons.

The relevant notification is No. 25/2024-Central Tax, issued on October 9, 2024.




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