Copper Scrap HSN Code: Classification for Copper Scrap and Metal
Copper scrap is widely generated from old wires, cables, industrial parts and machinery. It is collected, processed and reused by metal recyclers and manufacturers.
Under GST, copper scrap must be classified under the correct HSN code, as scrap metal is treated differently from finished copper products like rods, sheets or wires.
Copper Scrap HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
| Section | |
|---|---|
| Section No | 15 |
| Section Title | Guide to HSN Section 15 |
| Section Description | BASE METAL & ARTICLES OF BASE METAL |
| Chapter | |
|---|---|
| Chapter No | 74 |
| Chapter Title | Copper & Similar Articles |
| Chapter Description | Copper and articles thereof |
4 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 7404 | Copper waste & scrap | 18% |
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 74040011 | Empty/Discharged Copper Cartridges | 18% |
| 74040012 | Copper wire scrap (ISRI codes) | 18% |
| 74040019 | Other Copper Scrap | 18% |
| 74040021 | Empty/Discharged Cartridges (Copper Alloys) | 18% |
| 74040022 | Copper Waste and Scrap | 18% |
| 74040023 | Mixed New Nickel Silver Clippings Scrap | 18% |
| 74040024 | High Lead/Manganese Bronze Scrap | 18% |
| 74040025 | Copper Nickel Scrap (Dandy, Daunt, Delta, Decoy) | 18% |
| 74040029 | Other Copper Alloy Scrap | 18% |
* GST rates may vary based on the latest GST notifications
What is the HSN Code for Copper Scrap Metal?
In GST, copper scrap normally comes under the heading for copper waste and scrap, which is covered by the copper chapter in the tariff. This heading is used for:
- Scrap pieces from copper rods, pipes and sheets
- Old copper fittings and parts removed from plants
- Waste copper generated during manufacturing and processing
Using the correct copper scrap HSN code ensures proper tax rate and clear reporting in GSTR-1 and GSTR-3B.
How Copper Scrap Metal is Classified under HSN?
Classification of copper scrap depends mainly on the following factors:
- Material – the scrap must be primarily copper, not brass or other alloy.
- Condition – it should be clearly waste or scrap not usable as is, normally meant for recovery or melting.
- Form – it can be in the form of turnings, cuttings, cables, old parts or broken items.
Even if the scrap has different shapes or comes from different industries, it is usually grouped under the same copper scrap heading as long as the main metal is copper.
The HSN Code for Recycled Copper Scrap
Recycled copper scrap is scrap that has been sorted, cleaned, stripped or processed to make it ready for use again. Even after such processing, it is still waste or scrap, not a finished copper product.
For GST classification:
- Recycled copper scrap remains under the same copper scrap HSN heading.
- Once the scrap is melted and made into new rods, wires or sheets, the new product gets a different HSN code for finished copper goods.
Traders should take care to use the scrap HSN only until the stage of scrap. After conversion into fresh metal products, the HSN must be changed to the correct finished goods code.
GST on Copper Scrap Products
Copper scrap supply is taxable under GST, and in most cases:
- It is charged at the standard rate applicable to metal scrap, usually 18%.
- Reverse charge may apply in some notified cases where scrap is supplied by certain registered persons to specified buyers, depending on the current GST rules.
- ITC can be claimed by buyers who use scrap for further taxable supplies.
Correct use of copper scrap HSN code on invoices, e-way bills and returns reduces the risk of notices and disputes.
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Frequently Asked Questions
-
What is the HSN code for copper scrap metal?
The HSN code for most copper waste and scrap is generally 740400, which covers copper scrap metal used for recycling and recovery.
-
How are recycled and raw copper scraps classified under HSN?
Both raw and recycled copper scrap are classified under the same copper scrap heading, as long as they remain waste or scrap and not finished copper products.
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How does GST apply to copper scrap products?
Copper scrap is normally taxed at 18% under GST. Buyers who use scrap for further taxable supplies can usually claim ITC subject to general rules.
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Can copper scrap from different sources (for example, electrical and industrial) have different HSN codes?
Usually no. Scrap from electrical cables and industrial parts will still fall under the same copper scrap HSN code, provided copper remains the main recoverable metal.
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Are there any exemptions or special taxes for copper scrap under GST?
As of now, copper scrap is generally taxable at the standard rate. Any special treatment like reverse charge or changes in rate depend on current GST notifications, so businesses should always check the latest updates.