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Key Highlights
- HSN codes help determine the GST rates for plastic waste, parings, and scrap.
- The HSN code 3915 applies to plastic scrap and sets the GST rate.
- Understanding these codes and GST rates is important for businesses and consumers in the recycling industry.
Plastic waste is a growing concern, with discarded plastic products, packaging, and manufacturing leftovers piling up every day. However, much of this plastic waste can be recycled and transformed into new products.In India, the Goods and Services Tax (GST) applies to the recycling and disposal of plastic waste. HSN codes classify products for taxation purposes.Let’s understand the GST rates and HSN codes for plastic waste, parings, and scrap to stay compliant with tax regulations and make informed choices for the future.
What are HSN Codes and Why are They Important?
HSN (Harmonized System of Nomenclature) codes are numbers used to classify products for the Goods and Services Tax (GST). These codes help businesses and tax authorities apply the right tax rates to products.If you deal with plastic scrap, it’s important to know the right HSN code for your materials. This will help you understand the GST rate that applies to your business, ensuring that you’re compliant with tax laws.
3915 HSN Code and GST Rate for Waste, Parings, and Scrap of Plastics
Now, let’s take a closer look at HSN code 3915 , which is used for plastic waste, parings, and scrap. 1. Plastic Scrap (HSN Code: 3915) HSN Code : 3915 GST Rate : 18%If you’re dealing with plastic scrap, it will be classified under HSN code 3915 .The GST rate for plastic scrap under this code is 18% . This is a moderate tax rate applied to plastic waste materials that are collected after manufacturing or from discarded products.Some examples of items covered by this HSN code include:
- Waste plastic bags
- Plastic bottles and containers
- Discarded plastic household items
Even if the plastic is recycled, the 18% GST still applies. 2. GST Rate for Other Plastic Waste (HSN Code: 3915) Other plastic waste materials also fall under HSN code 3915 . These include:
- Plastic pairings : These are the leftover pieces after plastic products are made.
- Plastic production residues : Waste from the production process.
- Used plastic goods : Items like old toys, broken plastic furniture, or used plastic containers.
These products all fall under the same HSN code 3915, meaning they are taxed at the same 18% GST rate . Here are some more GST Rates and HSN Codes for Plastic waste and scrap:
| HSN Code | Description | GST Rate (%) |
| 3915 | Waste, parings and scrap, of plastics | 5% |
| 39151000 | Waste, parings and scrap, of plastics - of polymers of ethylene | 5% |
| 39152000 | Waste, parings and scrap, of plastics - of polymers of styrene | 5% |
| 391530 | Waste, parings and scrap, of plastics - of polymers of vinyl chloride | 5% |
| 39153010 | Waste, parings and scrap, of plastics - of polymers of vinyl chloride: of copolymers of vinyl chloride | 5% |
| 39153090 | Waste, parings and scrap, of plastics - of polymers of vinyl chloride: other | 5% |
| 391590 | Waste, parings and scrap, of plastics - of other plastics | 5% |
| 39159010 | Waste, parings and scrap, of plastics - of other plastics: of polypropylene | 5% |
| 39159021 | Waste, parings and scrap, of plastics - of other plastics: of polymers of vinyl acetate: of copolymers of vinyl acetate | 5% |
| 39159029 | Waste, parings and scrap, of plastics - of other plastics: of polymers of vinyl acetate: other | 5% |
| 39159030 | Waste, parings and scrap, of plastics - of other plastics: of acrylic polymers and methylacrylic copolymers | 5% |
| 39159041 | Waste, parings and scrap, of plastics - of other plastics: of alkyds, polyesters and epoxide resins: of alkyds and polyesters | 5% |
| 39159042 | Waste, parings and scrap, of plastics - of other plastics: of alkyds, polyesters and epoxide resins: of PET bottles | 5% |
| 39159049 | Waste, parings and scrap, of plastics - of other plastics: of alkyds, polyesters and epoxide resins: of epoxide resins | 5% |
| 39159050 | Waste, parings and scrap, of plastics - of other plastics: of polyamides | 5% |
| 39159061 | Waste, parings and scrap, of plastics - of other plastics: of amino resins; phenolic resins and polyurethanes: of phenoplast | 5% |
| 39159062 | Waste, parings and scrap, of plastics - of other plastics: of amino resins; phenolic resins and polyurethanes: of aminoplast | 5% |
| 39159063 | Waste, parings and scrap, of plastics - of other plastics: of amino resins; phenolic resins and polyurethanes: of polyurethanes | 5% |
| 39159071 | Waste, parings and scrap, of plastics - of other plastics: of cellulose and its chemical derivatives: of regenerated cellulose | 5% |
| 39159072 | Waste, parings and scrap, of plastics - of other plastics: of cellulose and its chemical derivatives: cellulose plastic waste such as cellulose nitrate film scrap non-plasticised | 5% |
| 39159073 | Waste, parings and scrap, of plastics - of other plastics: of cellulose and its chemical derivatives: cellulose plastic waste such as cellulose nitrate film scrap plasticized | 5% |
| 39159074 | Waste, parings and scrap, of plastics - of other plastics: of cellulose and its chemical derivatives: cellulose plastic waste such as cellulose acetate film scrap non-plasticised | 5% |
| 39159075 | Waste, parings and scrap, of plastics - of other plastics: of cellulose and its chemical derivatives: cellulose plastic waste such as cellulose acetate film scrap plasticized | 5% |
| 39159090 | Waste, parings and scrap, of plastics - of other plastics: other | 5% |
GST Impact on Waste, Parings, and Scrap of Plastics
Now that you know the HSN code 3915 and the 18% GST rate , let’s explore how this
affects businesses and consumers. For Businesses and Recyclers 1. Input Tax Credit (ITC) If you run a business involved in recycling or manufacturing plastic products, you can claim Input Tax Credit (ITC) on the 18% GST you pay when purchasing plastic scrap. This helps reduce your overall tax burden when selling recycled products or manufacturing new ones. 2. Recycling Benefits Recycling not only helps the environment but also saves money. By using recycled plastic materials, businesses can reduce their raw material costs. Even though 18% GST applies, the ITC helps offset the tax, especially if you're in the business of recycling plastic. 3. Processing Fees For recyclers or manufacturers, the 18% GST will be added to the processing fees. It’s important to keep this in mind when setting prices for your recycled plastic products. For Consumers 1. Price Impact Consumers may see a slight increase in the price of recycled plastic products due to the 18% GST on plastic scrap. However, recycled plastic products are usually cheaper than virgin plastic products, so the price increase is not significant. 2. Transparency The 18% GST on plastic waste is fixed, so consumers can easily understand the pricing of recycled plastic products. There are no hidden taxes, and businesses must clearly show the tax on their products.
Maximising Savings on Waste, Parings, and Scrap of Plastics
Whether you're a business or a consumer, here are a few tips to help you save money when dealing with plastic waste and scrap, even with the 18% GST . For Businesses 1. Claim ITC on Plastic Scrap Make sure to claim the Input Tax Credit (ITC) for the 18% GST paid on plastic scrap. This can reduce your overall tax costs when you produce or sell recycled plastic products. 2. Negotiate with Suppliers If you buy plastic scrap in large quantities, try to negotiate better prices with your suppliers. Lower scrap prices will help reduce the overall impact of GST on your production costs. 3. Set Up In-house Recycling Consider setting up a recycling process within your business. This can reduce your reliance on external suppliers, cut costs, and help you avoid extra GST charges on purchased scrap. For Consumers 1. Look for Bulk Discounts If you’re buying recycled plastic products in large quantities, look for suppliers that offer discounts for bulk purchases. Buying in bulk can help lower the price and reduce the impact of the 18% GST . 2. Support Local Recycling Initiatives Many local recycling centres offer good prices for recycled products. By buying locally, you can save on transportation costs and support eco-friendly businesses. 3. Watch for Promotions Some manufacturers offer sales or special offers on recycled plastic products. These promotions can help reduce the impact of GST on the price.
Make Informed Choices in the Plastic Recycling Industry
Whether you're running a business or buying recycled products, understanding the HSN code and GST rates for plastic waste and scrap can help you make more informed decisions.If you're a business owner, claiming Input Tax Credit (ITC) can help lower costs, while consumers can save money by looking for bulk discounts or supporting local recycling efforts.By staying informed about HSN code 3915 and the 18% GST, you can not only save money but also contribute to a more sustainable future. To help you navigate these calculations with ease, consider using our GST Calculator for accurate insights.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate for plastic scrap?
The GST rate for plastic scrap under HSN code 3915 is 18%.
What is the HSN code for plastic waste?
Plastic waste, parings, and scrap are classified under HSN code 3915.
How does GST affect the price of recycled plastic products?
The 18% GST on plastic scrap may slightly raise the price of recycled plastic products. However, recycled plastics are generally cheaper than virgin plastics, so the increase is not significant.
Can businesses claim Input Tax Credit (ITC) on plastic scrap?
Yes, businesses can claim Input Tax Credit (ITC) on the 18% GST paid for plastic scrap, reducing their overall tax burden.
What types of plastic products fall under HSN code 3915?
HSN code 3915 covers plastic scrap, including waste, parings, off-cuts, and discarded plastic items like bottles, bags, and production residues.
Is the GST rate for plastic scrap the same for all types of plastic waste?
Yes, the 18% GST rate applies to all plastic waste, parings, and scrap under HSN code 3915.
How can businesses reduce the impact of GST on plastic recycling?
You can reduce the impact by claiming Input Tax Credit (ITC) on the 18% GST paid on plastic scrap and negotiating lower prices with suppliers.
Are recycled plastic products cheaper than new plastic products?
Generally, recycled plastic products are cheaper than new plastic products, though the 18% GST may raise the price slightly.
Does the GST apply to processed recycled plastic?
Yes, even if the plastic is recycled, it still falls under the 18% GST under HSN code 3915.
Can I buy plastic scrap directly from suppliers for recycling purposes?
Yes, you can buy plastic scrap directly from suppliers and claim Input Tax Credit (ITC) on the 18% GST paid, helping reduce the overall cost of recycling.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
