57th GST Council Meeting 2026: New GST Rules Proposed for Waste and Scrap Under RCM and 2% TDS:

The 57th meeting of the GST Council was held on October 8, 2026, in New Delhi, under the chairpersonship of Union Finance and Corporate Affairs Minister Nirmala Sitharaman. The Council recommended several measures to simplify GST compliance, including reforms in registration, return filing, refunds and adjudication. It also proposed clarifications on GST applicability to certain goods and services, along with steps to make tax compliance easier for businesses.

GST on Waste and Scrap: RCM and TDS Rules Proposed

The GST Council recommended bringing the supply of plastic waste and scrap, electrical and electronic waste, tyre waste and scrap, and used cooking oil under the Reverse Charge Mechanism (RCM). Under this system, when an unregistered seller supplies these items to a registered business, the buyer will be responsible for paying the GST, even if the seller’s turnover is below the GST registration threshold. However, the seller will need to register for GST once their turnover crosses the prescribed threshold limit.

The Council also recommended introducing Tax Deducted at Source (TDS) at the rate of 2% on the supply of these specified waste and scrap items between registered businesses (B2B transactions). These measures aim to improve tax compliance and bring greater transparency to waste and scrap transactions.