GST Council plans 2% TDS on B2B waste and scrap
The GST Council is planning to introduce a 2% tax deducted at source (TDS) on specified waste and scrap transactions between registered businesses: think plastic, old tires, electrical junk, and even used cooking oil.
The goal? Make tax compliance in the recycling world a bit tighter and keep things fair for everyone involved.
GST Council clarifies TDS and taxes
If you are a GST-registered buyer, you will need to deduct this TDS when buying from registered suppliers. For unregistered sellers, the reverse charge mechanism kicks in instead.
The Council also cleared up how some products are taxed: seaweed-extract biostimulants registered under the Fertiliser Control Order, 1985 now count as fertilizers, but products containing plant growth regulators will not qualify for the concession, and there is more clarity for secondhand car dealers, input tax credits, retreaded tractor tires, sublimation paper, and psyllium seeds.
All these tweaks are meant to make taxes simpler and cut down on confusion.