GST registration compulsory for suppliers of scrap, used cooking oil and e-waste
What changed. Under section 23(2) of the CGST Act, the Government can notify categories of persons who need not register for GST. Notification No. 5/2017–Central Tax is one such notification. Notification No. 06/2026–Central Tax replaces its proviso. Under the new proviso, the exemption does not apply to any person supplying any of these goods:
- used cooking oil (heading 1518 of the Customs Tariff);
- waste and scrap of plastics (heading 3915);
- waste and scrap of tyres (heading 4004);
- metal scrap (Chapters 72 to 81); and
- electrical and electronics waste and scrap (heading 8549).
So these suppliers cannot rely on Notification No. 5/2017 to stay unregistered. They must register if the other provisions of the CGST Act require it.
Who it affects. Scrap dealers, aggregators, collectors of used cooking oil, e-waste handlers and other suppliers of these goods who are currently not registered because of Notification No. 5/2017.
From when. 1 November 2026.
What to do. If you supply any of these goods and are not registered, check whether you now need to register, and apply in time. If you buy these goods, update your vendor records. Registered buyers will also have to deduct GST TDS on purchases from registered suppliers of these goods under Notification No. 07/2026–Central Tax.
Official source: CBIC Notification No. 06/2026–Central Tax dated 27 October 2026
This is general information based on the law as on the date shown, not professional advice. Rules change often; check the current position before acting.