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Will India’s recycling sector collapse under the new GST regime? (downtoearth)

The Goods and Services Tax (GST) is a step in the right direction for India. But the rates on certain goods are a deep cause of concern. These include scrap material.

Before GST, there was no tax on scrap material except on e-waste and metals (6 per cent Value Added Tax). Under the new GST regime, all categories of scrap now have a high tax rate of mostly 18 per cent.


Scrap material

GST rate

Plastic

18%

Rubber

18%

Glass

18%

Iron/ copper/ Aluminium/ tin (Any metal waste)

18%

Paper

12%

E- waste (Batteries, machine etc.)

18%


Vivek, a kabadiwaala (scrap-seller) in Dwarka, New Delhi told Down To Earth: “Due to GST on scrap, our work has reduced because the customer/ waste generators are now getting lesser rates for their recyclable waste. They are looking for better prices elsewhere or just throwing away their waste. Earlier, if we were getting 2.5 quintal per month of paper, now we are hardly getting 2 quintals.”

What does this mean for the recycle economy?

Every large waste dealer or re…