<h1>Report warns GST leakages in recycling could turn collections into losses; propose RCM (Sec 9(3) CGST) and ~1% rate</h1> A 2025 policy report warns that high informality in the recycling supply chain causes large GST leakages, turning current formal collections (~?30,900 crore) into net fiscal losses projected to reach ~?86,700 crore by 2035. The report models two legal reforms: shifting tax liability to documented buyers under the reverse charge mechanism and reducing GST on scrap to about 1% (or a lower preferred rate), which together would curb fake invoicing, incentivize formalization, and convert projected losses into substantial net gains (up to ~?1.82 lakh crore under certain scenarios). Reforms also aim to stabilize credits, unlock investment, and support large-scale green job creation.