Gst Rate on Scarp Papers & Machinery

[Rajesh Mohanty]

My uncle has a scarp business.He collects Scarp papers & machinery from all kind of institutions basically from Banks across all over the State & then he send it for recycle purpose/sale it to the factories.

So my questions are:

1.Does he need to take GST registration?

2.What are the GST rates is applicable for sacrp paper & machinery?

[YAGAY andSUN]

Yes, in our view he needs to get himself registered provided he has crossed the threshold limit or he may go for composition scheme - registration.

[DR.MARIAPPAN GOVINDARAJAN]

Difference rates are there. Please refer to the tariff.

[YAGAY andSUN]

The Rate of GST On Recovered waste or scrap of paper or paperboard has been reduced from 12% to 5%, w.e.f. 13.10.17.Oct 15, 2017

[YAGAY andSUN]

Machinery or Equipment Attracting 12% GST. The following goods under chapter 84 of the HSN code attract 12% GST.

Also get these rate cross checked from your consultant/department.

[KASTURI SETHI]

I support the views of both experts. Recently there has been reduction of rate of GST on so many items. So it is necessary to confirm latest rate of tax on all items of scrap. M/s.YAGAY And SUN have made it easy for you.

[Ganeshan Kalyani]

registration is required if the turnover exceeds the threshold limit. paper scrap attracts 5%.

[KASTURI SETHI]

When all experts contribute on any issue, the querist gets the best advice. Contentious issue becomes clearer.

[Ganeshan Kalyani]

Agreed Sir.

AI Summary

GST on scrap paper and machinery: registration may be required and scrap paper attracts a reduced GST rate. Registration is required where turnover exceeds the threshold, with composition as an option. Recovered waste and scrap of paper is subject to a reduced GST rate, while machinery and equipment scrap are assessed under machinery classifications and attract a higher GST rate; verify specific HSN classifications and current tariff notifications with a tax advisor or department.