{
  "id": 13193371,
  "title": "GST Council proposes 2% TDS on scrap deals",
  "url": "https://urgent.news/2026/10/09/gst-council-proposes-2-tds-on-scrap-deals-13193371",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-09T18:33:26.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/economy/policy/gst-council-proposes-2-tds-on-scrap-deals/articleshow/134840930.cms"
  },
  "original_language": "en",
  "account": "The 57th GST Council, meeting in New Delhi, has proposed a 2% tax deducted at source (TDS) on certain waste and scrap transactions. This includes plastic waste, discarded tyres, electrical and electronic scrap, and used cooking oil. The new rules also introduce a reverse charge mechanism (RCM) for purchases from unregistered suppliers, even if their sales fall below the GST registration threshold. The objective is to strengthen tax compliance throughout the recycling chain. The recommendations, outlined in a frequently asked questions (FAQs) document, are built on the compliance framework for metal scrap introduced at the previous meeting. The council has also clarified tax treatments for various products to resolve classification disputes. For instance, seaweed-extract biostimulants registered under the Fertiliser Control Order, 1985, will now be classified as fertilisers under HSN heading 3101. Similarly, sublimation paper is classified under heading 4809. The council has also clarified that second-hand car dealers can avail of the concessional GST margin scheme for input tax credit on eligible business inputs like repair and maintenance services and spare parts. However, the purchase of second-hand vehicles under this scheme does not allow input tax credit. The GST Council has also aligned the GST treatment of retreaded tractor tyres with new tractor tyres and clarified that toy-related rate entries cover various products under Customs Tariff heading 9503, including dolls and puzzles. Additionally, a separate nil-rate entry for psyllium seeds has been created, regardless of whether they are fresh, chilled, frozen, or dried. Finally, disputes involving eligible seaweed-based biostimulants and sublimation paper are proposed to be settled on an as-is basis.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Economy",
        "title": "GST Council proposes 2% TDS on scrap deals",
        "url": "https://urgent.news/2026/10/09/gst-council-proposes-2-tds-on-scrap-deals",
        "published": "2026-10-09T18:33:26.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}