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GST Registration for Scrap Dealers & Recycling Businesses in India
The scrap and metal recycling trade has its own GST rules — reverse charge on unregistered purchases, TDS on metal scrap deals, and rates that vary by material. SetupFiling.in's CA-assisted team gets your registration filed correctly, GSTIN in 24–72 hours.
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Quick Answer: Scrap dealers and recyclers must register for GST once turnover crosses ₹40 lakh. Under current rules, purchasing metal scrap from an unregistered supplier shifts GST liability to the registered buyer under reverse charge, and registered buyers must deduct 2% TDS when buying metal scrap from registered suppliers above the threshold contract value. SetupFiling.in files your registration at ₹999 onwards, GSTIN in 24–72 hours.
Why Scrap & Recycling GST Rules Are Different From a Regular Trading Business
Buying and selling scrap doesn't follow the same simple GST pattern as most goods trading. The scrap and recycling sector runs largely on informal, unregistered sellers — kabadiwalas, small collectors, and unorganised suppliers — which is exactly the gap the government targeted with two specific rules for the metal scrap sector: a reverse charge mechanism (RCM) when a registered dealer buys from an unregistered supplier, and a 2% TDS deduction when a registered buyer purchases metal scrap from a registered supplier above a set contract value. Get either of these wrong and you're either under-remitting tax you were liable for, or failing a TDS obligation that shows up as a mismatch during return filing. GST Registration services across India from SetupFiling.in are filed with these sector-specific rules built in from day one.
SetupFiling.in is founded by practising Chartered Accountants, Company Secretaries, and Trademark Attorneys with 15+ years of combined experience, and we have already helped 12,000+ entrepreneurs and 50,000+ customers across India register and stay compliant.
Reverse Charge & TDS Rules on Metal Scrap Transactions
| Transaction | Who Pays GST | Additional Obligation |
|---|---|---|
| Registered dealer buys metal scrap from an unregistered supplier | Buyer, under reverse charge (RCM) | Buyer self-invoices and deposits GST directly; ITC can generally be claimed |
| Registered dealer buys metal scrap from a registered supplier | Supplier, on a normal forward-charge invoice | Buyer must deduct 2% TDS (1% CGST + 1% SGST, or 2% IGST) if contract value exceeds the prescribed threshold |
| Sale of non-metal scrap (plastic, paper, rubber waste) | Supplier, on a normal forward-charge invoice | Standard GST rules apply — RCM and TDS provisions above are specific to metal scrap |
These provisions apply specifically to metal scrap classified under Chapter 72 to 81 of the HSN. Confirm your exact material classification and the current TDS threshold with our team, as GST Council notifications are periodically revised.
GST Rates on Common Scrap & Recyclable Materials
| Material | Typical GST Rate |
|---|---|
| Ferrous metal scrap (iron, steel) | 18% |
| Non-ferrous metal scrap (copper, aluminium, brass) | 18% |
| Plastic waste and scrap | 5% |
| Paper waste and scrap | 5% |
| Rubber waste and scrap | 5% |
GST rate slabs on scrap categories are revised periodically by the GST Council. Confirm the current applicable rate for your exact material mix with our team before pricing purchases and sales.
Choose Your GST Registration Package
Transparent, one-time pricing — no hidden charges. Pick the package that fits your scrap or recycling business.
01
Silver
Just the GST registration — fast and affordable
₹999/-- GST Registration Certificate
- GST Portal User ID & Password
- Delivery in 48–72 hours
- ARN tracking included
02
Gold
GST Registration + 6 months of returns
₹3999 ₹1999/-- GST Registration Certificate
- GST Portal User ID & Password
- 6 Months GST return filing
- Delivery in 24 Hours
MOST POPULAR
03
Premium
GST Registration + 12 Month GST Return
₹7398 ₹3,699- GST Registration Certificate
- GST Portal User ID & Password
- 12 Months GST Return Filing
- Delivery in 24 Hours
Who Needs GST Registration — Scrap Dealers & Recyclers
- Your annual turnover exceeds ₹40 lakh from scrap trading or recycling
- You buy metal scrap from unregistered collectors and need to handle RCM correctly
- You supply processed scrap or recycled material to manufacturers in other states
- You run a scrap yard, recycling unit, or material recovery facility
- You sell to registered buyers who deduct TDS and need to reconcile it in your returns
- You want to raise GST-compliant invoices for industrial or institutional buyers
- You've recently completed a Private Limited Company registration for your recycling business
- You voluntarily want to claim Input Tax Credit on transport, machinery, and processing costs
Materials We Commonly See Registered
Ferrous & Steel Scrap
Copper & Aluminium Scrap
E-Waste Recycling
Plastic Waste Trading
Paper & Cardboard Waste
Automobile Scrap Yards
Documents Required for GST Registration — Scrap & Recycling Business
- PAN Card of the proprietor / firm / entity
- Aadhaar Card of the proprietor / partners / directors
- Passport-size photograph
- Proof of yard or premises address (electricity bill / rent agreement)
- Bank account statement or cancelled cheque
- Pollution control board consent, if applicable to your recycling activity
- Certificate of Incorporation (for companies) or Partnership Deed
- NOC from property owner, if premises are rented
How to Get GST Registration for a Scrap Business — Step by Step
1
Choose your package and place your order
Select Silver, Gold, or Premium above and complete payment securely through secure online payment options.
2
Share your documents and material types
Send your PAN, Aadhaar, premises proof, and bank details, along with the type of scrap or recyclable material you trade in.
3
Application filed with correct HSN codes
Our CA/CS team prepares and files your GST REG-01 application with the correct HSN codes for your material category.
4
ARN generated and tracked
You receive an Application Reference Number (ARN) instantly, and we track its status until approval.
5
GSTIN and certificate delivered
Once approved, your GST Registration Certificate, GSTIN, and GST portal login credentials are emailed to you — ready to invoice correctly under RCM or forward charge.
Benefits of GST Registration for Scrap & Recycling Businesses
- Handle RCM correctly: Being registered lets you self-invoice and claim ITC on reverse-charge purchases from unregistered suppliers.
- Reconcile TDS smoothly: A registered GSTIN lets you match TDS credits deducted by registered buyers against your GST returns.
- Claim input tax credit: Offset GST paid on transport, machinery, and processing equipment against your output tax.
- Supply to manufacturers directly: Industrial buyers require a GSTIN before onboarding scrap and recycled material suppliers.
- Trade across states: Ship processed scrap and recyclables inter-state without restriction.
- Avoid penalties: Registering on time avoids interest and late-fee exposure under the CGST Act.
Why Choose SetupFiling.in for Scrap & Recycling GST Registration?
The scrap sector's RCM and TDS rules are recent enough that a lot of generic filing services still register these businesses like any other trader — which leaves the RCM self-invoicing and TDS reconciliation processes unset from day one. Our team of Chartered Accountants and Company Secretaries builds these into your setup from the start. And compliance doesn't stop at registration: monthly and quarterly GST return filing help, GSTR-3B filing support, updating your GST registration details, and GST registration cancellation process are all handled by the same team.
- 15+ years of combined CA, CS & legal expertise
- 12,000+ businesses and 50,000+ customers served pan-India
- 100% online — no office visits required
- RCM and TDS handling built into your setup from day one
- Dedicated WhatsApp support for real-time updates
- Fast turnaround — 24 to 72 hour delivery
Related Compliance Services
Scrap and recycling businesses often need more than one registration. Explore related services:
Frequently Asked Questions — GST Registration for Scrap Dealers & Recyclers
Is GST registration mandatory for scrap dealers?
Yes, once your annual turnover from scrap trading or recycling exceeds ₹40 lakh, or immediately if you supply inter-state or handle transactions covered under the metal scrap RCM and TDS rules.
What is reverse charge (RCM) on metal scrap purchases?
Under current rules, when a registered dealer buys metal scrap from an unregistered supplier, the registered buyer becomes liable to pay GST directly under reverse charge, rather than the unregistered seller charging it.
What is the TDS rule for metal scrap transactions?
When a registered buyer purchases metal scrap from a registered supplier above a prescribed contract value, the buyer must deduct 2% TDS (1% CGST + 1% SGST, or 2% IGST) under Section 51 of the GST Act.
What GST rate applies to scrap and recyclable materials?
Metal scrap, such as ferrous and non-ferrous scrap, is typically taxed at 18%, while plastic, paper, and rubber waste are generally taxed at 5%. Rates are periodically revised by the GST Council.
How much does GST Registration Cost for a scrap or recycling business?
GST registration with SetupFiling.in starts at ₹999 for the Silver package. The Gold package (registration + 6 months of returns) costs ₹1,999, and the Premium package (registration + 12 months of returns) costs ₹3,699.
Do the RCM and TDS rules apply to plastic or paper scrap too?
No. The RCM and TDS provisions for scrap transactions are specific to metal scrap. Plastic, paper, and other non-metal scrap continue to follow standard forward-charge GST rules.
What documents are required for GST registration for a scrap business?
You need PAN, Aadhaar, a passport-size photo, proof of yard or premises address, bank account details, and pollution control board consent if applicable to your activity. Companies and LLPs additionally need a Certificate of Incorporation.
How long does it take to get a GST number for a scrap dealer?
The Silver package is delivered in 48–72 hours, while the Gold and Premium packages are delivered within 24 hours, subject to timely document submission and GST portal approval.
How do I place an order for GST registration for my scrap business?
Select a package above and click "Place Your Order" to pay securely via Razorpay, or message us on WhatsApp at +91 98182 09246 and our team will guide you through the process.
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