New GST rules withdraw registration exemptions for specific industrial scrap and waste suppliers

Notification 06/2026 withdraws the GST registration exemption previously available to suppliers dealing in used cooking oil, plastic, tyre, metal, and electronic scrap. This mandate requires all commercial entities and vendors operating within these specific waste streams to secure formal indirect tax registration without exception. In tax administration, exemptions are occasionally granted to unorganized or early-stage sectors to ease compliance, but evolving regulatory oversight often brings these segments into the formal net to plug revenue leakages and ensure a clear audit trail.

Previously, these specific scrap and waste suppliers operated outside mandatory registration thresholds or special exemptions, whereas the current amendment removes that relief entirely. Tax professionals and business owners must evaluate their supply chains to identify unregistered vendors handling used cooking oil, plastic, tyres, metals, or e-waste, ensuring they apply for GST registration promptly. Practitioners should monitor upcoming departmental clarifications and verify that client invoicing reflects proper compliance.

Bottom line: affected scrap suppliers must formalize their registrations immediately to protect their business operations and input tax credits.