Important Keywords: Notification No. 24/2024 – Central Tax: Seeks to amend Notification No. 5/2017-Central Tax dated 19.06.2017, Section 23(2) CGST Act 2017, NOTIFICATION No. 24/2024-Central Tax,
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Table of Contents
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 9th October, 2024.
Notification No. 24/2024 – Central Tax: Seeks to amend Notification No. 5/2017-Central Tax dated 19.06.2017
G.S.R….(E).- In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 5/2017- Central Tax, published in the Gazette of India, Extraordinary, Part II, section 3, sub- section (i) vide number G.S.R. 607(E), dated the 19th June, 2017, namely:-
In the said notification, after the opening paragraph, the following proviso shall be inserted, namely :- “Provided that nothing contained in this notification shall apply to any person engaged in the supply of
metal scrap, falling under Chapters 72 to 81 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975).”.
2. This notification shall come into force with effect from the 10th day of October, 2024.
[F No. CBIC-190354/149/2024-TO(TRU-II)]
(Amreeta Titus)
Deputy Secretary
Note: The principal notification no. 5/2017- Central Tax was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R.607(E), dated the 19th June, 2017.
Frequently Asked Questions (FAQs)
Q1: What is Notification No. 24/2024 – Central Tax about?
Answer: Notification No. 24/2024 – Central Tax, issued by the Ministry of Finance (CBIC) on October 9, 2024, amends Notification No. 5/2017-Central Tax, which was originally issued on June 19, 2017. This amendment specifies that the exemption from GST registration under Section 23(2) of the CGST Act, 2017, will not apply to persons engaged in the supply of metal scrap classified under Chapters 72 to 81 of the Customs Tariff Act, 1975.
This means businesses dealing in metal scrap will now be mandatorily required to obtain GST registration.
Need GST registration? Apply here: Finodha Online GST Registration.
Q2: What is the significance of this amendment?
Answer: The original Notification No. 5/2017-Central Tax provided exemptions from GST registration for certain suppliers. However, Notification No. 24/2024 now removes this exemption for metal scrap dealers.
This change has been made to:
✅ Ensure tax compliance in the metal scrap industry.
✅ Prevent tax evasion and unaccounted transactions.
✅ Bring uniformity in taxation by ensuring all metal scrap suppliers are registered under GST.
If you need GST compliance assistance, visit: Finodha GST Compliance.
Q3: Who will be affected by Notification No. 24/2024 – Central Tax?
Answer: The amendment affects all persons engaged in the supply of metal scrap under Chapters 72 to 81 of the Customs Tariff Act, 1975, including:
Scrap dealers and recyclers
Importers and exporters of metal scrap
Manufacturing units using scrap as raw material
Local traders and wholesale suppliers
Such businesses must now obtain GST registration and file regular GST returns.
For hassle-free GST return filing, check: Finodha GST Return Filing.
Q4: What are Chapters 72 to 81 of the Customs Tariff Act, 1975?
Answer: Chapters 72 to 81 of the Customs Tariff Act, 1975 cover a wide range of metal and metal scrap categories, including:
Chapter 72: Iron and steel scrap
Chapter 73: Articles of iron and steel
Chapter 74: Copper and copper alloys
Chapter 75: Nickel
Chapter 76: Aluminum and aluminum products
Chapter 78: Lead
Chapter 79: Zinc
Chapter 80: Tin
Chapter 81: Other base metals (tungsten, titanium, etc.)
Businesses trading in any of these metal scraps must now comply with GST registration rules.
For expert assistance on GST registration, visit: Register for GST.
Q5: When does Notification No. 24/2024 – Central Tax come into effect?
Answer: The notification comes into effect from October 10, 2024. From this date, all persons engaged in the supply of metal scrap under Chapters 72 to 81 must comply with GST registration requirements.
To avoid penalties and ensure smooth compliance, register now at: Finodha GST Registration.
Q6: Why has the government removed the exemption for metal scrap suppliers?
Answer: The GST exemption was removed to:
🚀 Curb tax evasion in the metal scrap industry.
🚀 Ensure proper invoicing and ITC (Input Tax Credit) claims.
🚀 Increase transparency in high-value scrap transactions.
🚀 Bring scrap dealers under the formal GST framework.
If you need expert guidance on GST compliance, consult: Finodha GST Experts.
Q7: What should metal scrap suppliers do now to comply with GST rules?
Answer: If you are engaged in metal scrap supply, follow these steps:
1️⃣ Apply for GST registration immediately to avoid penalties.
2️⃣ Start issuing GST-compliant invoices for all transactions.
3️⃣ File GST returns on time to avoid late fees.
4️⃣ Maintain proper records of purchases and sales to claim Input Tax Credit (ITC).
Need help with compliance? Get Finodha GST Compliance Services: Click Here.
Q8: What happens if a metal scrap supplier does not register for GST?
Answer: If a metal scrap trader or business fails to register under GST despite this new rule:
❌ They may face penalties for non-compliance.
❌ They won’t be able to legally claim Input Tax Credit (ITC).
❌ Their transactions may get flagged by GST authorities.
❌ They cannot generate e-way bills, making logistics difficult.
Avoid legal trouble—Register for GST today! Start Here.
Q9: How does this impact small-scale scrap dealers?
Answer: Small-scale scrap dealers who were previously exempt under Notification No. 5/2017 must now obtain GST registration if they deal in metal scrap. However, they may still qualify for the GST Composition Scheme if their turnover is below the threshold.
To check if you qualify for composition tax benefits, talk to an expert at Finodha GST Professionals.
Q10: Where can I get help for GST registration and compliance?
Answer: If you need professional assistance for GST registration, return filing, or compliance, Finodha offers expert GST services.
🔹 GST Compliance Solutions: Finodha GST Compliance
🔹 Register for GST Easily: Online GST Registration
🔹 File Your GST Returns: Finodha GST Return Filing
For complete GST solutions, visit Finodha.in today! 🚀
Conclusion
Notification No. 24/2024 – Central Tax is a crucial update removing GST registration exemptions for metal scrap suppliers. This change ensures greater compliance and transparency in the scrap industry while preventing tax evasion.
If you are a metal scrap dealer, ensure you register under GST and file returns on time to avoid penalties.
For hassle-free GST services, trust Finodha.in—Your trusted GST partner! ✅
Download PDF: Notification No. 24/2024 – Central Tax
Read More: Seeks to amend Notification No 12/2017- Integrated Tax (Rate) dated 28.06.2017.
More Information: https://taxinformation.cbic.gov.in/
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