GST tax deduction at source (TDS) has been extended beyond metal scrap. If you buy or deal in certain scrap and waste goods, you may now need a separate TDS registration on the GST portal.
Background
Notification No. 25/2024-Central Tax (9 October 2024) brought TDS under Section 51 of the CGST Act to businesses dealing in metal scrap (Chapters 72 to 81 of the Customs Tariff).
Notification No. 07/2026-Central Tax (27 October 2026) now adds four more categories.
Goods now covered
| Goods | Customs Tariff heading |
|---|---|
| Used cooking oil | 1518 |
| Waste and scrap of plastics | 3915 |
| Waste and scrap of tyres | 4004 |
| Electrical and electronic waste and scrap | 8549 |
These are in addition to metal scrap under Chapters 72 to 81.
How to register for TDS (FORM GST REG-07)
- Open FORM GST REG-07 on the GST portal.
- In Part B, Table 2, under Constitution of Business, select "Others".
- A text box appears. Enter your category, for example Used Cooking Oil Dealers, Waste and Scrap of Plastics Dealers, Waste and Scrap of Tyres Dealers or Electrical and Electronics Waste and Scrap Dealers.
- Complete the rest of the form and submit.
What you should do
- Check whether you buy any of the goods listed above.
- If you do, read Notification 07/2026-CT for exactly who must deduct TDS, then apply in REG-07.
- Make sure your accounting and purchase processes are ready to deduct and deposit TDS from the date it applies to you.
