Scrap machine HSN Code

The HSN Code for Your Scrap Machine

If you deal with waste and recycling, you know that classifying products for GST is critical. A “scrap machine” is a broad term that can refer to many types of equipment used in the recycling process. To find the correct HSN code, you must first identify the machine’s primary function and the material it processes.

Understand the HSN Codes for Scrap and Scrap Machines

The data you provided shows a clear distinction between “waste and scrap” materials and the “machines” that process them. The HSN code for a machine is based on its mechanical function, not the type of scrap it handles.

• Scrap Materials: The provided data includes HSN codes for various waste materials:
  • Paper or paperboard waste and scrap: HSN 48169020 (18% GST).
  • Plastic waste, parings, and scrap: HSN 3915 (18% GST).
  • Electrical waste and scrap: HSN 8548 (18% GST). This includes batteries and accumulators.
  • Metal waste and scrap: HSN 7404 for copper waste and scrap (18% GST) and HSN 8112 for vanadium waste and scrap (18% GST).
• Scrap Machines: The data categorizes machinery for different functions under Chapter 84, “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.” These machines are not called “scrap machines” but are described by their functions. For example:
  • Machines for working metal: HSN codes like 8460, 8462, and 8463 are used for machine-tools that work metal by grinding, polishing, pressing, or working wire. These machines often process scrap metal.
  • Sewing machines: The data mentions sewing machines (HSN 8452) with a 12% GST rate. While not a “scrap machine,” it is a good example of how function determines the HSN code.

Classify Your Machine by Function

To find the right HSN code for your scrap machine, you need to ask what it does. For example, is it a baling press, a shredder, a sorting machine, or a grinder?

• Baling Press: A baling press compresses scrap into dense bales for easy storage and transport. Based on market practices, a baling press for metal scrap would likely fall under HSN 8462, for “machine-tools (including presses) for working metal.” The GST rate is typically 18%.
• Shredder or Grinder: A shredder or grinder machine breaks down materials into smaller pieces. These machines can be classified under HSN 8474, which covers “machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading.” The GST rate is generally 18%.
• Sorting or Separating Machine: If the machine sorts or separates different types of scrap, its HSN code would also be under HSN 8474.

The data provided reinforces that machines are categorized by their function. For instance, you see codes for “machine-tools for grinding” (8460) and “machine-tools for working metal by forging… or pressing” (8462), all with an 18% GST rate.

Remember the 18% GST Rate

Most of the machinery and waste materials listed in the data have a consistent GST rate of 18%. This is the standard rate for many industrial goods and machinery. It is important to note that the GST rate on the scrap material itself is often the same as the machinery used to process it. For instance, copper scrap and the machines that process it both have an 18% GST rate.