GST and TDS Applicability on Metal Scrap Supply


Understanding GST and TDS Applicability on Metal Scrap Supply
The metal scrap industry is an essential part of the recycling chain, but navigating the tax implications can be confusing. Here's a detailed breakdown to help suppliers and buyers of metal scrap understand their GST and TDS responsibilities.

GST on Metal Scrap Supply

Registered Supplier:

  1. When a registered supplier sells to a registered buyer, GST at 18% is payable on the Forward Charge Mechanism (FCM).
  2. If the buyer is unregistered, the same 18% GST applies, but no TDS under GST is required.

Unregistered Supplier:

  1. When an unregistered supplier sells to a registered buyer, the buyer is responsible for paying GST under the Reverse Charge Mechanism (RCM) at 18%.
  2. No GST is applicable if both the supplier and buyer are unregistered.

TDS on Metal Scrap Supply

  • Registered Buyers must deduct 2% TDS under GST when purchasing from a registered supplier.
  • No TDS is applicable for unregistered buyers in any scenario.

Key Points to Remember:

  • Unregistered suppliers need to obtain GST registration if their aggregate turnover exceeds the prescribed threshold.
  • Proper GST and TDS compliance is essential to avoid penalties and ensure smooth business transactions.

Need help with your GST or TDS filing? Taxla Services is here to guide you through every step of the process. Contact us for expert assistance today!

📞 Get in touch:
+91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

#MetalScrapSupply #GSTCompliance #TDSOnMetalScrap #RCM #FCM #TaxlaServices #GSTOnMetalScrap #GSTGuidance #TaxConsultants #TaxFiling #TaxCompliance




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