Scrap trading — big in Bhavnagar (Alang) and across Gujarat’s industrial belts — has a GST profile that has tightened in recent years, with reverse-charge and TDS provisions added specifically for metal scrap. It’s a sector where staying current on the rules genuinely matters.
The rate and the reverse-charge shift
Metal scrap is generally taxed at 18%. To curb leakage, the government has brought in provisions where a registered recipient pays GST under reverse charge on scrap received from suppliers in certain situations, and a TDS mechanism on metal-scrap supplies between registered persons. These are relatively recent and evolving, so we apply the current position rather than dated assumptions.
Registration and e-way bills
Scrap dealers dealing inter-state or above the threshold need registration, and scrap moves in bulk — so e-way bills are near-constant and frequently checked. Correct valuation, HSN and vehicle details on each e-way bill are what keep consignments moving and out of trouble. We build this into your compliance.
What we handle for scrap dealers
- Registration and correct 18% invoicing
- Reverse-charge and TDS-on-scrap compliance under the current rules
- E-way bill generation for bulk movement
- Monthly GSTR-1 + GSTR-3B with ITC reconciliation