Scrap batteries HSN Code

Understanding the HSN Code for Scrap Batteries

For businesses dealing with the collection, recycling, or disposal of scrap batteries, navigating the correct HSN (Harmonized System of Nomenclature) codes and associated GST (Goods and Services Tax) rates is crucial. This guide will clarify the HSN codes for various types of scrap batteries and their applicable GST rates.

The HSN Code for Scrap Batteries

Scrap batteries, including spent primary cells, primary batteries, and electric accumulators, primarily fall under Chapter 85 of the HSN, which covers “Electrical machinery and equipment and parts thereof.”

Specifically, the general HSN code for “Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators” is 8548. This broad category further breaks down into more precise subheadings:

• 854810: This is a common subheading for “Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators; Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators.”
  • 85481010: Often specifies “Waste And Scrap Of Primary Cells, Primary Batteries And Electric Accumulators.”
  • 85481020: May refer to “Spent Primary Cells, Spent Primary Batteries And Spent Electric Accumulators.”
  • 85481090: Covers “Other” waste and scrap of these types of batteries.
• 85489000: This code encompasses “Electrical Parts Of Machinery Or Apparatus, Not Specified Or Included Elsewhere In This Chapter – Other,” which can include waste and scrap of certain electrical parts of machinery.

It’s important to note that while other scrap materials like plastics (Chapter 39) or various metals (Chapter 81) might be components of batteries, the specific HSN codes listed under Chapter 85 are for the batteries themselves in their waste or scrap form.

Determine the GST Rate for Scrap Batteries

All the HSN codes mentioned above for waste and scrap of primary cells, primary batteries, and electric accumulators (namely, 8548, 854810, 85481010, 85481020, 85481090, and 85489000) are subject to an 18% GST rate. This rate has been effective since July 1, 2017.

Critical Points for Businesses Dealing with Scrap Batteries

• Precise Classification: Accurately classifying scrap batteries using the correct HSN code is paramount for GST compliance. Given the various subheadings under 8548, ensure you select the one that most precisely describes the type of scrap battery.
• Environmental Regulations: Beyond GST, remember that handling and disposing of scrap batteries are subject to stringent environmental regulations due to their hazardous content.
• Documentation: Maintain thorough records of all transactions involving scrap batteries, including HSN codes, GST calculations, and any environmental compliance documentation.

By adhering to these guidelines, businesses can effectively manage their scrap battery operations, ensuring both tax compliance and responsible environmental practices.