GST Rate and HSN Code of Scrap and Waste

Under the GST regime, scrap and waste have not been related to the GST Laws but despite that sale of scrap is considered as ‘supply’ in course of business which is why the GST rate and HSN code are applicable. Howsoever, according to the dictionary scrap implies the “waste that either has no financial worth or just the estimation of its raw material substance recoverable through recycling.” 

GST Rate and HSN Code of Scrap and Waste 

Finding proper HSN (Harmonized System of Nomenclature) code and GST rate of scrap and waste is definitely a tedious task. The highest rate for scrap material is 18% and the highest number of HSN code is 8 digit. 

While HSN section for waste and scrap of materials like plastic, aluminum, iron and steel and so forth exists as it did in the past system, various waste and scrap like rejected, completed/semi-completed products or raw material are yet to be covered under GST. 

Most manufacturing areas can’t store waste and scrap for a longer period as it would hamper production, space and could be unsafe. So, these businesses need to clear waste and scrap at some GST rate and HSN code. 

HSN Code	Summary	GST Rate
3915	Plastic waste, parings or scrap	5%  – 18%
4004	Rubber waste, parings or scrap	5%
4017 00 20	Hard rubber waste	5%
4401	Wood Scrap	5%
4415	Packing cases, Box, Crates, Drums	5%
4707	Paper waste or scrap	5%
7001	Cullet or other waste or scrap of Glass	5%
2524	Asbestos waste	5%
7112	Waste and scrap of precious metal	3%
3006	Pharmaceutical Waste (except Contraceptives)	12%
3825	Municipal waste, sewage sludge, clinical waste	0%
2621	Slag Ash Waste	18%
7204	Vehicle Scrap	18%
7204	MS Scrap of all types	18%
7204	Scrap US Rail	18%
7404	Copper Waste Scrap	18%
7408	Bronze Waste Scrap	18%
7503	Nickel Waste Scrap	18%
7602	Aluminum Waste Scrap	18%
7902	Zinc Waste Scrap	18%
8002	Tin Waste & Scrap	18%
8113	Cermet waste and scrap	18%
85	E-Waste	5% – 18%
8548	Primary Cells, batteries and electric accumulators waste and scrap	18%

Note: The HSN code for some of the scraps has not been notified yet. So, as per notification No.1/2017-Central Tax Rate dated 28th June 2017, you can cover those in the residual entry 453 of Schedule III.