Machinery scrap HSN Code, Applicability, HSN Code and GST Rate on Machinery scrap

Chapter	Description	HSN Code	Rate (%)	CESS (%)	Effective Date	Rate Revision
Electrical <strong>machinery</strong> and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Ccumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – O	85489000	18%	–	01/07/2017	–
Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators	854810	18%	–	01/07/2017	–
Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Ccumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – W	85481010	18%	–	01/07/2017	–
Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Ccumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – W	85481090	18%	–	01/07/2017	–
Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter	8548	18%	–	01/07/2017	–
Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Ccumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – W	85481020	18%	–	01/07/2017	–
Waste And Scrap Of Lead-Acid Accumulators; Spent Lead-Acid Accumulators	85491100	18%	–	–	–
Nuclear reactors, boilers, <strong>machinery</strong> and mechanical appliances; parts thereof	Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Pile-Drivers And Pile-Extractors; Snowploughs And Snow-Blowers	8430	18%	–	15/11/2017	–
Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Scrappers	84293000	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Pile-Drivers And Pile-Extractors: Pile-Extractors	84301020	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Other Machinery, Self-Propelled: Mining Machinery (E	84305010	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Coal Or Rock Cutters And Tunneling Machinery: Other	84303900	18%	–	15/11/2017	–
Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Bulldozers And Angledozers – Other: Angledozers	84291910	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – – Other Boring Or Sinking Machinery – Self-Propelled	84304110	18%	–	15/11/2017	–
Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Bulldozers And Angledozers – Track Laying : Bulldozers	84291120	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Coal Or Rock Cutters And Tunneling Machinery: Self-P	84303110	18%	–	15/11/2017	–
Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Tamping Machines And Road Rollers :Tamping Machines	84294030	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – – Other Boring Or Sinking Machinery – Self-Propelled	84304120	18%	–	15/11/2017	–
Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Pile-Drivers And Pile-Extractors: Pile-Drivers	84301010	18%	–	15/11/2017	–
Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Bulldozers And Angledozers – Other:Bulldozers	84291920	18%	–	15/11/2017	–

Chapter

Description

HSN Code

Rate (%)

CESS (%)

Effective Date

Rate Revision

Electrical <strong>machinery</strong> and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Ccumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – O

85489000

18%

–

01/07/2017

–

Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators

854810

18%

–

01/07/2017

–

85481010

18%

–

01/07/2017

–

85481090

18%

–

01/07/2017

–

Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators; Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter

8548

18%

–

01/07/2017

–

85481020

18%

–

01/07/2017

–

Waste And Scrap Of Lead-Acid Accumulators; Spent Lead-Acid Accumulators

85491100

18%

–

Nuclear reactors, boilers, <strong>machinery</strong> and mechanical appliances; parts thereof

Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Pile-Drivers And Pile-Extractors; Snowploughs And Snow-Blowers

8430

18%

–

15/11/2017

–

Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Scrappers

84293000

18%

–

15/11/2017

–

Other Moving, Grading, Levelling, Scraping, Excavating, Tamping, Compacting, Extracting Or Boring Machinery, For Earth, Minerals Or Ores; Piledrivers And Pile-Extractors; Snow-Ploughs And Snow-Blowers – Pile-Drivers And Pile-Extractors: Pile-Extractors

84301020

18%

–

15/11/2017

–

84305010

18%

–

15/11/2017

–

84303900

18%

–

15/11/2017

–

Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Bulldozers And Angledozers – Other: Angledozers

84291910

18%

–

15/11/2017

–

84304110

18%

–

15/11/2017

–

84291120

18%

–

15/11/2017

–

84303110

18%

–

15/11/2017

–

Self-Propelled Bulldozers, Angledozers, Graders, Levellers, Scrapers, Mechanical Shovels, Excavators, Shovel Loaders, Tamping Machines And Road Rollers – Tamping Machines And Road Rollers :Tamping Machines

84294030

18%

–

15/11/2017

–

84304120

18%

–

15/11/2017

–

84301010

18%

–

15/11/2017

–

84291920

18%

–

15/11/2017

–

Understanding Machinery Scrap HSN Codes: A Guide to GST Compliance

The disposal and recycling of machinery scrap form a significant part of various industries. For businesses involved in this sector in India, understanding the correct Harmonized System of Nomenclature (HSN) code for different types of machinery scrap is critical for accurate Goods and Services Tax (GST) compliance. The HSN code system, an internationally standardized method, helps in classifying goods for uniform taxation.

Machinery scrap doesn’t fall under a single, overarching HSN code. Its classification and corresponding GST rate largely depend on the material composition of the scrap and its previous function.

Electrical Machinery Scrap: This category includes waste from electrical machinery and equipment, such as old batteries, accumulators, and electrical parts. These typically fall under HSN Chapter 85: Electrical machinery and equipment and parts thereof. Specifically, HSN 8548 covers “Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators; Electrical Parts Of Machinery Or Apparatus.” The GST rate for these is generally 18%. Sub-codes like 85481010 for specific types of electrical waste also carry this rate.
Non-Electrical Machinery Scrap (Metal-Based): When machinery is primarily made of metals (like iron, steel, copper, aluminum), its scrap would fall under the HSN codes for waste and scrap of those specific metals. For instance, ferrous waste and scrap (iron and steel) falls under HSN Chapter 72, typically with HSN 7204, attracting an 18% GST rate. Similarly, copper scrap (HSN 7404) and aluminum scrap (HSN 7602) also generally attract an 18% GST. The data provided also shows various “moving, grading, levelling, scraping, excavating machinery” under HSN Chapter 84, but these refer to the new machinery itself, not their scrap. When these become scrap, their classification would revert to the HSN of the primary material they are composed of (e.g., iron/steel scrap).
Other Machinery Scrap: If machinery scrap comprises other materials like plastics, wood, or rubber, it would be classified under their respective HSN codes for waste and scrap, with varying GST rates. For example, plastic waste and scrap (HSN 3915) is also generally taxed at 18%.

In essence, determining the correct HSN code for machinery scrap requires an assessment of the primary material of the discarded machine or part. Always verify with the latest GST notifications to ensure compliance.

FAQs

What does HSN mean for machinery scrap?

HSN (Harmonized System of Nomenclature) is the international system used to classify machinery scrap for GST purposes in India.

Is there a single HSN code for all types of machinery scrap?

No, the HSN code for machinery scrap depends on its material composition (e.g., electrical, ferrous metal, non-ferrous metal, plastic).

What is the HSN code for electrical machinery scrap?

Electrical machinery scrap, including waste from primary cells and batteries, generally falls under HSN Chapter 85, specifically HSN 8548.

Can plastic components from machinery also be classified as scrap?

Yes, plastic components from machinery, when scrapped, would fall under HSN Chapter 39 (Plastics and articles thereof), typically HSN 3915 (Waste, parings and scrap, of plastics), attracting an 18% GST.

When did the current GST rates for most machinery scrap classifications become effective?

Most current GST rates for machinery scrap became effective from July 1, 2017, with some specific rate revisions later.

Machinery scrap HSN Code

Understanding Machinery Scrap HSN Codes: A Guide to GST Compliance

HSN Code of similar products

FAQs

What does HSN mean for machinery scrap?

Is there a single HSN code for all types of machinery scrap?

What is the HSN code for electrical machinery scrap?

Can plastic components from machinery also be classified as scrap?

When did the current GST rates for most machinery scrap classifications become effective?