Brass scrap HSN Code

Understanding Brass Scrap HSN Code

Brass scrap plays a crucial role in the circular economy, providing a valuable secondary raw material for countless industries. From old plumbing fixtures to discarded decorative items, brass waste is collected and recycled, reducing the need for virgin resources. For businesses dealing in brass scrap, knowing the correct HSN (Harmonized System of Nomenclature) code is essential for seamless GST (Goods and Services Tax) compliance.

Brass Scrap HSN Codes and GST Rates

Brass scrap, being an alloy of copper and zinc, is primarily classified under Chapter 74 of the HSN, which covers “Copper and articles thereof.” Specifically, it falls under the heading for “Copper Waste And Scrap.”

The most common and explicitly defined HSN code for brass scrap is:

• Copper Waste And Scrap – Copper Waste And Scrap: Of Copper Alloys : Brass Scrap, Namely The Following : Refinery Brass Scrap Covered By Isri Code Word Drink; Composition Of Red Brass Scrap Covered By Isri Code Word Ebony; Red Brass Composition Turnings Sc: This detailed description corresponds to HSN 74040022. This specific code encompasses various types of brass scrap, often identified by ISRI (Institute of Scrap Recycling Industries) code words like “Drink,” “Ebony,” and “Enerv,” indicating different compositions and forms of brass waste. All brass scrap falling under this HSN code is subject to an 18% GST rate.

It’s important to note that while HSN 74040019 covers “Other” copper waste and scrap of copper (meaning unalloyed copper), brass scrap is specifically categorized under “Of Copper Alloys,” confirming its distinct HSN.

Distinguishing Brass Scrap from Other Metals and Scraps

The provided data also lists HSN codes for other types of scrap, highlighting the importance of accurate classification based on material:

• Copper Bars, Rods And Profiles – Of Copper Alloys : Of Copper-Zinc Base Alloys (Brass): This refers to new or semi-finished brass products, not scrap. HSN codes like 740721 (general), 74072110 (Bars), and 74072130 (Hollow Bars) also carry an 18% GST rate. This shows that even new brass products within the same chapter have different specific HSNs.
• Plastics and articles thereof (Chapter 39): This includes “Waste, Parings And Scrap, Of Plastics” like polymers of styrene (HSN 39152000) and vinyl chloride (HSN 39153010). These plastic scraps are distinct from metal scrap and are also subject to an 18% GST rate.
• Other base metals; cermets; articles thereof (Chapter 81): This chapter covers waste and scrap of various other metals such as Vanadium (HSN 81124020), Cadmium (HSN 81072000), Bismuth (HSN 810600), Molybdenum (HSN 81029700), Thallium (HSN 81125200), and Magnesium (HSN 810420, 81049030, 81049090), as well as Cermets (HSN 8113). All these various metal scraps also attract an 18% GST rate.
• Other made up textile articles; sets; worn clothing and worn textile articles; rags (Chapter 63): This includes “Used Or New Rags, Scrap Twine, Cordage, Rope And Cables” (HSN 63109090 for “Other” and 63101030 for “Gunny Cuttings”). These textile scraps have a 12% GST rate, demonstrating a different tax rate compared to metal scraps.
• Wood and articles of wood; wood charcoal (Chapter 44): This covers “Sawdust And Wood Waste And Scrap” (HSN 4401), which has a 5% GST rate.

The consistent 18% GST rate for most metal scraps, including brass, simplifies compliance for businesses dealing with these materials, but it is critical to correctly identify the type of scrap to apply the appropriate HSN code.