Why India's recycling industry wants 0 GST on plastic bottles

Business Oct 10, 2025

India's recycling industry is asking the government to drop GST on recycled plastic bottles from 18% to zero.
Right now, recycled bottles are taxed the same as new plastic, which recyclers say makes it harder to compete and pushes many into the informal sector.

Industry leaders call current tax 'disincentive for recycling'

Taxing recycled and new plastic equally actually makes recycled products more expensive, which isn't great for the environment or for workers.
A study says lowering GST could increase government revenue by ₹1.8 lakh crore by 2035.
Industry leaders have called the current tax "a disincentive for recycling" and want the government to step in, hoping this change will support greener choices and bring more recycling businesses into the formal economy.