GST TDS on purchases of scrap, used cooking oil and e-waste from 1 November 2026
What changed. Notification No. 50/2018–Central Tax lists the persons who must deduct tax at source (TDS) under section 51 of the CGST Act. Notification No. 07/2026–Central Tax substitutes clause (d) of that notification. Clause (d) now covers any registered person who receives a supply of any of the following goods from another registered person:
- 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).
The amendment was made on the recommendations of the GST Council.
Who it affects. Registered businesses that buy any of these goods from registered suppliers, such as recyclers, manufacturers using scrap as raw material, biofuel producers and traders in waste and scrap.
From when. 1 November 2026.
What to do. Identify purchases of these goods by tariff heading and check whether the supplier is registered. Set up TDS deduction, deposit and return filing for such purchases from 1 November 2026. Also check whether you need a separate GST registration as a tax deductor. Read this together with Notification No. 06/2026–Central Tax, which makes GST registration compulsory for suppliers of the same goods.
Official source: CBIC Notification No. 07/2026–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.