Plastic Scrap HSN Code for GST Filing
Plastic scrap and plastic waste are important raw materials for the recycling industry. Many manufacturers, scrap dealers and recyclers buy and sell plastic scrap on a regular basis.
To claim input tax credit and file accurate GST returns, it is necessary to use the correct plastic scrap HSN code and understand the applicable GST rate on different forms of plastic waste.
What is the HSN Code for Plastic Scrap and Waste?
Plastic scrap and waste are mainly classified under heading 3915 which covers waste, parings and scrap of plastics. The detailed HSN depends on the type of plastic such as polyethylene, polypropylene or PET and on whether the material is in the form of flakes, regrind or other shapes.
| HSN Code | Product name | Product description | GST rate |
|---|---|---|---|
| 3915 | Mixed plastic scrap | Assorted plastic waste and scrap collected for recycling | 18% |
| 3915 | PET bottle scrap | Used PET bottles that are crushed or baled for recycling | 18% |
| 3915 | Industrial plastic scrap | Factory scrap such as runners, sprues and rejected moulded parts | 18% |
| 3915 | Plastic film and bag scrap | Waste plastic films, carry bags and packaging material sent for recycling | 18% |
How Does GST Apply to Plastic Scrap and Recycled Plastic?
Plastic scrap supplied as goods normally attracts GST at the standard rate of 18%. This applies whether the scrap is sold by factories, traders or recycling companies. The buyer can claim input tax credit if the scrap is used for making taxable supplies.
When scrap is processed into recycled granules or finished plastic products the output will also attract GST at the rate that applies to those goods. Businesses should keep clear records showing the movement from scrap to recycled raw material and then to finished products so that input tax credit can be matched correctly.
Why Is Plastic Scrap Classified Separately Under HSN Code?
Separating plastic scrap under heading 3915 helps the government track recycling activities and gives clarity on the tax treatment of waste materials. It also ensures that plastic scrap is not confused with virgin plastic raw material which falls under other headings in Chapter 39.
For scrap dealers and recyclers correct HSN classification is essential because tax officers closely monitor transactions in scrap due to the risk of mismatched invoices and fake input tax credit. Proper documentation and correct HSN code reduce this risk.
How to Classify Plastic Scrap and Waste for GST Filing?
To classify plastic scrap correctly identify the type of plastic, for example PET, polypropylene or polyethylene, and note the form such as flakes, lumps or mixed waste. In most cases it will fall under heading 3915, with the detailed subheading chosen based on the specific material description in the tariff schedule.
While filing GST returns, report the outward supplies of plastic scrap under the correct HSN with the taxable value and GST amount at 18%. Make sure purchase invoices from suppliers also carry heading 3915 so that input tax credit can be matched without difficulty.
Conclusion
Plastic scrap and waste are generally classified under HSN 3915 and attract 18% GST when supplied as goods. Recyclers and manufacturers should use this heading consistently, keep detailed records of scrap purchases and sales and ensure that the same HSN is reflected in GST returns. Correct classification supports smooth recycling operations and protects the input tax credit chain.
I’m CA Shivani Kandalkar, a Chartered Accountant based in Mumbai with over 1 year of experience. My focus areas are Taxation and GSTR compliance, where I help individuals and businesses file accurate returns and avoid notices. With a background in M.Com and professional training as a Chartered Accountant, I aim to provide clear, practical guidance that simplifies tax laws and supports better financial decisions.
Frequently Asked Questions
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What is the HSN code for plastic scrap?
Plastic scrap and plastic waste are usually classified under HSN heading 3915 which covers waste, parings and scrap of plastics. The detailed subheading depends on the exact material.
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How does the GST rate apply to plastic scrap and recycled plastic?
Supply of plastic scrap as goods generally attracts 18% GST. Recycled granules or products made from the scrap are taxed at the rate that applies to those finished goods under their own HSN codes.
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Are there different HSN codes for plastic waste based on type for example recyclable or non recyclable?
All plastic waste and scrap is normally grouped under heading 3915, but different subheadings may be used for specific polymers or forms. The tariff does not usually distinguish between recyclable and non recyclable material for HSN purposes.
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How do I classify plastic scrap correctly for GST returns?
Describe the scrap clearly in invoices, select heading 3915 and the most suitable subheading from the tariff and ensure that the same description is used for both purchases and sales so that GST returns can be reconciled easily.
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Does the GST rate differ for various forms of plastic scrap?
In general most forms of plastic scrap attract the same 18% GST rate. Any rate change would be based on a specific government notification, so businesses should review updates regularly.