Important Keyword: Notification No. 06/2024- Integrated Tax (Rate), GST on metal scrap, IGST amendment, Notification 4/2017, Integrated Tax Rate 2024, GST Notification October 2024,
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Table of Contents
[F. No. CBIC-190354/149/2024-TO(TRU-II)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 8th October, 2024
Notification No. 06/2024 – Integrated Tax (Rate): Seeks to amend Notification No. 4/2017 – Integrated Tax (Rate) dated 28.06.2017.
GST [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R….(E).- In exercise of the powers conferred by sub-section (3) of section 5 of the IGST Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 4/2017- Integrated Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 669(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, after S. No. 7 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) | (5) |
| “8. | 72, 73, 74, 75, 76, 77, 78, 79, 80 or 81 | Metal scrap | Any unregistered person | Any registered person”. |
2. This notification shall come into force on the 10th day of October, 2024.
(Amreeta Titus)
Deputy Secretary
Note: – The principal notification No. 4/2017- Integrated Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 669(E), dated the 28thJune, 2017 and was last amended by notification No. 22/2023- Integrated Tax (Rate), dated the 19th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 781(E), dated the 19th October, 2023.
📚 Frequently Asked Questions (FAQs): Notification No. 06/2024 – Integrated Tax (Rate)
❓ Q1: What is Notification No. 06/2024 – Integrated Tax (Rate) all about?
Answer:
Notification No. 06/2024-Integrated Tax (Rate) amends the original Notification No. 4/2017-IGST. It introduces a new S. No. 8 in the GST rate table, specifically covering “metal scrap” classified under HSN codes 72 to 81, supplied by an unregistered person to a registered person. This clarifies the reverse charge applicability under IGST.
❓ Q2: Which goods are covered under this notification?
Answer:
The notification applies to “metal scrap” under HSN chapters 72 to 81. This includes items like:
🧱 Iron and steel scrap
🛢️ Copper scrap
🔩 Aluminium and lead scrap
🔧 Zinc and tin scrap
These are now subject to reverse charge when supplied by an unregistered person to a registered dealer.
❓ Q3: Who bears the GST liability in such transactions?
Answer:
Under reverse charge mechanism (RCM), the registered recipient (buyer) is liable to pay IGST when purchasing metal scrap from an unregistered seller.
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❓ Q4: From when is this amendment effective?
Answer:
The provisions of Notification 06/2024-IGST are applicable from 📅 10th October 2024.
❓ Q5: Is this amendment applicable PAN India?
Answer:
Yes ✅, this notification applies uniformly across all States and Union Territories under the Integrated Goods and Services Tax (IGST) framework.
❓ Q6: What is the impact on the metal scrap trade?
Answer:
This change brings:
✅ More clarity in compliance
📊 Accountability on registered buyers
💼 A shift in tax burden under RCM
⛔ No more unregistered supply without compliance obligation
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❓ Q7: Does this affect export or import of scrap?
Answer:
No, the notification solely concerns domestic transactions where a registered person receives metal scrap from an unregistered seller.
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🧠 Summary:
Notification No. 06/2024-Integrated Tax (Rate) ensures that scrap dealers and traders correctly handle GST through RCM when dealing with unregistered sellers. It aims to plug revenue leakage and enforce tax discipline in the metal scrap sector.
🔚 Conclusion:
If you’re a business dealing in scrap metals, it’s crucial to understand and implement the changes introduced by this notification. Keep your GST obligations sorted to avoid penalties.
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Download PDF: Notification No. 06/2024 – Integrated Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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