GST TDS registration advisory for dealers in scrap and other goods
GST TDS Registration Advisory for Dealers in Scrap and Other Notified Goods
The Government of India had earlier extended the applicability of Tax Deducted at Source (TDS) provisions under Section 51 of the Central Goods and Services Tax Act, 2017, to businesses dealing in metal scrap, vide Notification No. 25/2024–Central Tax dated 9 October 2024. Following this amendment, GSTN had also issued an advisory dated 22 October 2024 explaining the registration requirements for such dealers.
Now, vide Notification No. 07/2026–Central Tax dated 27 October 2026, the scope of goods covered under the GST TDS framework has been expanded to include certain additional categories of waste, scrap and other notified goods, apart from metal scrap covered under Chapters 72 to 81 of the First Schedule to the Customs Tariff Act, 1975.
1. Additional Categories of Goods Covered Under GST TDS
The following categories have now been brought within the ambit of the TDS provisions:
| S. No. | Description of Goods | Customs Tariff Heading |
|---|---|---|
| 1 | Used Cooking Oil | 1518 |
| 2 | Waste and Scrap of Plastics | 3915 |
| 3 | Waste and Scrap of Tyres | 4004 |
| 4 | Electrical and Electronic Waste and Scrap | 8549 |
Accordingly, dealers engaged in these newly notified categories will also be required to comply with the applicable GST TDS registration requirements.
2. Procedure for Obtaining TDS Registration
Taxpayers dealing in the above-mentioned goods are required to select the appropriate business constitution while applying for TDS registration through FORM GST REG-07.
The registration application should be completed as follows:
- Navigate to Part B of Table 2 in FORM GST REG-07.
- Under the field titled “Constitution of Business”, select the option “Others”.
- Upon selecting this option, an additional text field will become available.
- Enter the relevant business category in the text field, depending on the goods dealt with.
The following descriptions may be used:
- Used Cooking Oil Dealers
- Waste and Scrap of Plastics Dealers
- Waste and Scrap of Tyres Dealers
- Electrical and Electronic Waste and Scrap Dealers
3. Completion and Submission of Application
After specifying the applicable business category, taxpayers should fill in the remaining particulars required in FORM GST REG-07 and complete the prescribed registration formalities.
The application should then be submitted through the GST Common Portal.
Important Advisory
Businesses dealing in used cooking oil, plastic waste and scrap, tyre waste and scrap, or electrical and electronic waste and scrap should examine their applicability under Section 51 of the CGST Act, 2017, in light of the latest notification.
Eligible taxpayers should ensure that they select “Others” under the Constitution of Business field in FORM GST REG-07 and clearly mention their respective category to facilitate the TDS registration process.
Conclusion: With the issuance of Notification No. 07/2026–Central Tax dated 27 October 2026, the GST TDS framework has been extended beyond metal scrap to cover four additional categories of goods. Dealers operating in these sectors should take note of the revised requirements and ensure appropriate registration and compliance under the GST law.
Also Read:
New GST Rules from 1 November 2026: Rate Changes, Reverse Charge, EV Services and ITC Restrictions
CBIC Announces Major GST Relief: No Arrests, E-Way Bill Reforms & ₹10,000 SCN Limit
