Ferrous waste and scrap are an important part of the metal recycling industry. Recycling these materials helps to conserve natural resources and reduce the environmental impact of mineral extraction. If you're in the business of buying or selling ferrous waste and scrap, it's important to be aware of the relevant GST rates and HSN codes. In this article, we'll provide a comprehensive guide to the GST rates and HSN code for ferrous waste and scrap.
Ferrous waste and scrap is a type of metal scrap that is primarily composed of iron. It is generated as a by-product in various industries, including construction, manufacturing, and engineering. Some common examples of ferrous waste and scrap include steel bars, rods, and castings.
The GST Council has set the GST rate for ferrous waste and scrap at 18%. This rate applies to all types of ferrous waste and scrap, including iron and steel scrap.
It's important to note that GST is a tax on the value added at each stage of the supply chain. This means that if you're a supplier of ferrous waste and scrap, you'll need to charge GST on the price you sell it for. If you're a buyer of ferrous waste and scrap, you'll need to pay the GST on the price you pay for it.
The HSN code for ferrous waste and scrap is 7204. This code applies to all types of iron and steel waste and scrap, including iron and steel castings, forgings, and stampings.
The HSN code is a harmonized system of nomenclature that is used to classify goods for taxation purposes. It's a standardized system that is used internationally, which makes it easier for businesses to trade across borders.
Knowing the GST rates and HSN code for ferrous waste and scrap is important if you're in the business of buying or selling these materials. The GST rate for ferrous waste and scrap is set at 18%, and the HSN code for ferrous waste and scrap is 7204. By understanding these codes, you can ensure that you're compliant with the relevant tax laws and regulations.
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