GST TDS Registration for Scrap, Used Cooking Oil, Plastic, Tyre and E-Waste
GST TDS under Section 51 now covers used cooking oil, plastic, tyre and e-waste scrap from 1 November 2026. How to register in REG-07, plus the notification download.
GST TDS registration for scrap dealers has been widened. Until now, GST tax deduction at source under Section 51 of the CGST Act, 2017 covered only metal scrap among these goods. From 1 November 2026, Notification No. 07/2026-Central Tax dated 27 October 2026 adds four more categories, and GSTN has issued an advisory dated 1 November 2026 explaining how affected taxpayers should register.
| Item | Details |
|---|---|
| Notification | No. 07/2026-Central Tax dated 27 October 2026, which substitutes clause (d) of Notification No. 50/2018-Central Tax dated 13 September 2018 |
| Effective date | 1 November 2026 |
| Registration form | FORM GST REG-07 (registration as a tax deductor) |
| Advisory | TDS Registration Advisory for Dealers in Scrap and Other Notified Goods (GSTN, 1 November 2026) |
Goods Now Covered under GST TDS
| Goods | Tariff heading | Status |
|---|---|---|
| Metal scrap | Chapters 72 to 81 | Already covered since the October 2024 notification |
| Used cooking oil | 1518 | New |
| Waste and scrap of plastics | 3915 | New |
| Waste and scrap of tyres | 4004 | New |
| Electrical and electronics waste and scrap | 8549 | New |
Background: GST TDS Registration for Metal Scrap Dealers
Notification No. 25/2024-Central Tax dated 9 October 2024 first brought dealers in metal scrap into the TDS framework of Section 51, and GSTN issued a registration advisory on 22 October 2024. The 2026 notification follows the same approach and extends it to more waste and scrap categories.
How to Apply for GST TDS Registration under the New Categories
- Apply for registration as a tax deductor in FORM GST REG-07 on the GST portal.
- In Part B of Table 2 of the form, select “Others” under “Constitution of Business”.
- A text box appears. Enter your category, for example “Used Cooking Oil Dealers”, “Waste and Scrap of Plastics Dealers”, “Waste and Scrap of Tyres Dealers” or “Electrical and Electronics Waste and Scrap Dealers”.
- Complete the remaining details in REG-07 as usual and submit.
How Section 51 GST TDS Works in Brief
- A registered person who is notified under Section 51 deducts tax at source when it receives these goods from a registered supplier, if the total value of supply under a contract exceeds ₹2.5 lakh, excluding tax.
- The deduction rate is 2% of the taxable value, made up of 1% CGST and 1% SGST/UTGST for intra-State supplies, or 2% IGST for inter-State supplies.
- The deductor deposits the amount with the government and reports it in FORM GSTR-7 by the 10th of the following month.
- The supplier (deductee) accepts the deduction in the TDS/TCS credit statement and receives the credit in the electronic cash ledger, which can be used to pay output tax.
These are the general features of Section 51. Please check the notification and the Act for the exact conditions that apply to your transactions.
Who Needs GST TDS Registration Now?
- Recyclers, processors, biodiesel units and manufacturers that buy used cooking oil, plastic scrap, tyre scrap or e-waste from registered suppliers.
- Traders and dealers in these goods, who should check whether they are covered as deductors or as suppliers whose payments will now be subject to TDS.
- Finance teams that need to update vendor master data, TDS ledgers and GSTR-7 workflows for these goods.
Related notification: Notification No. 06/2026-Central Tax was issued on the same date (27 October 2026) and, according to secondary sources, deals with registration for persons making only reverse-charge supplies of these goods. Suppliers should read it alongside the TDS notification.
In short, GST TDS registration is now needed by more buyers of waste and scrap, so check your position before the next purchase.
Download the Official Documents
Use these official links to read or download the source documents. They open on government websites.
- Notification No. 07/2026-Central Tax dated 27 October 2026 – extends GST TDS to the four new categories of goods
- Notification No. 06/2026-Central Tax dated 27 October 2026 – companion notification issued the same day
- GSTN advisory dated 1 November 2026 – TDS Registration Advisory for Dealers in Scrap and Other Notified Goods
Frequently Asked Questions
Which new goods are covered under GST TDS from 1 November 2026?
Used cooking oil (heading 1518), waste and scrap of plastics (heading 3915), waste and scrap of tyres (heading 4004) and electrical and electronics waste and scrap (heading 8549). Metal scrap was already covered.
Which form is used for GST TDS registration?
FORM GST REG-07. Select “Others” under Constitution of Business in Part B of Table 2 and type your category in the text box.
What is the GST TDS threshold?
Section 51 applies where the total value of supply under a contract exceeds ₹2.5 lakh, excluding tax.
When is GSTR-7 due?
The deduction is reported in FORM GSTR-7 by the 10th of the following month.
Related Updates from the 1 November 2026 GST Advisories
- GST Portal Advisories of 1 November 2026: complete roundup
- Revised GST REG-01 Form from 1 November 2026: What Has Changed
- Rule 14B GST Registration for E-Commerce Sellers Using an ECO Warehouse
- GST Registration Cancellation: Revised REG-16 Process with Electronic Approval
- GST Composition Levy: New Section 10(2A) Category and REG-14 Category Change
- GST Registration Amendment: Automatic Update After OTP Verification (REG-14)
- GST Collections October 2026: Gross ₹2.31 Lakh Crore, Net ₹2.03 Lakh Crore
Source: GSTN advisory dated 1 November 2026 and Notification No. 07/2026-Central Tax. This article is a plain-language summary for general information. Please read the official notification, circular and advisory for the exact legal text before acting.
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