Aluminium Scrap HSN Code for GST Filing
Aluminium scrap is generated in large quantities by metal fabricators, cable makers, window frame manufacturers, casting units and recycling yards. Traders buy this scrap and supply it to smelters and foundries that convert it back into usable metal.
To use the aluminium scrap HSN code correctly and apply the right GST rate, scrap dealers, recyclers and industrial buyers need to understand how aluminium scrap is classified under GST and how the present three slab rate structure of 5%, 18% and 40% works for this material.
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Aluminium Scrap HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
Section Classification
| Section Field | Section Value |
|---|---|
| Section No | 15 |
| Section Title | Guide to HSN Section 15 |
| Section Description | BASE METAL & ARTICLES OF BASE METAL |
Section Field
Section Value
Section Field
Section Value
Section Field
Section Value
Chapter Classification
| Chapter Field | Chapter Value |
|---|---|
| Chapter No | 76 |
| Chapter Title | Aluminium & Similar Articles |
| Chapter Description | Aluminium and articles thereof |
Chapter Field
Chapter Value
Chapter Field
Chapter Value
Chapter Field
Chapter Value
4 Digit HSN Code Classification
8 Digit HSN Code Classification
* GST rates may vary based on the latest GST notifications
What GST Rate Applies to Aluminium Scrap Under HSN Code
In the current three slab GST system, aluminium scrap in the aluminium waste and scrap family is usually taxed at the standard 18% slab. This reflects its treatment as a regular taxable supply of metal scrap used by smelters, foundries and secondary producers.
The GST rate may vary depending on specific notifications and conditions, for example where there are special schemes for particular sectors. However, for most routine scrap purchases and sales, businesses treat aluminium scrap as attracting 18% GST under the aluminium waste and scrap family.
When setting up items in accounting software, scrap dealers commonly assign the aluminium scrap HSN family to all relevant scrap products and link it with the 18% rate so that invoices and tax reports stay consistent.
Why is Aluminium Scrap HSN Code Important for GST Compliance
Using the correct aluminium scrap HSN code on every invoice helps buyers and sellers clearly see how the material has been classified and why a particular GST rate has been charged. This supports smooth input tax credit for industrial buyers who use aluminium scrap as a raw material.
Correct HSN usage also keeps outward supply data clean in GSTR one and other returns. If scrap is wrongly billed under a different metal family or with a lower rate than required, it can lead to short payment of tax, mismatch with recipient data and possible interest and penalties.
Once the right aluminium scrap HSN code and GST rate are saved in the item master, every sale and purchase entry can follow the same classification. This reduces manual changes and makes reconciliation easier during audits and departmental checks.
How Do Different Types of Aluminium Scrap Get Classified for GST
Different types of aluminium scrap such as turnings, borings, off cuts from sheets, window frame scrap, cable scrap and broken castings can all fall in the same aluminium waste and scrap family when they are collected mainly for metal recovery.
In practice, many businesses create separate stock items for different grades or sources of aluminium scrap but still keep them under the same aluminium scrap HSN family. The difference in grade is then shown in the item description rather than through a change in HSN code.
If aluminium waste is still in the form of a usable product and is being sold as second quality goods rather than scrap, it may need a different HSN family. In such situations, classification should be based on the main description and intended use of the goods rather than only on the word scrap.
Conclusion
Aluminium scrap HSN codes usually place all common grades of metal scrap in a single aluminium waste and scrap family. Under the present three slab GST structure, this family generally attracts 18% and is treated as a standard taxable supply for recycling and metal recovery.
By linking every aluminium scrap item to the correct HSN family, applying the proper GST rate in the item master and using these details on each invoice, scrap dealers and industrial buyers can keep billing accurate, protect input tax credit and stay compliant during GST reviews and audits.
