Negative impactSector
GST Council proposes 2% TDS on scrap deals
Economic Times 1 hr ago·9 Oct 2026, 6:33 pm
The GST Council has proposed a 2% tax deducted at source (TDS) on scrap transactions covering plastic waste, used tyres, electronic scrap and used cooking oil. Registered buyers would have to deduct the TDS when purchasing from other registered sellers, and would also pay GST on a reverse‑charge basis for purchases from unregistered sellers, even if those sellers are below the registration threshold.
The rule adds a compliance layer and reduces cash flow for scrap dealers, especially smaller recyclers who may need to remit the deducted amount to the tax department. This could push up the cost of recycled inputs for manufacturers and affect margins of waste‑management companies. Investors should watch for the final notification, the implementation timeline and any exemptions that may be granted after industry feedback.
Key takeaways
- Category: Sector.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
