- What
- GST TDS registration for scrap & notified-goods dealers
- Form
- FORM GST REG-07 (TDS deductor)
- New goods added
- Used cooking oil, plastic/tyre scrap, e-waste
- Basis
- Notification 07/2026-Central Tax, dated 27 Oct 2026
The short version
- GST TDS under Section 51 — first applied to metal scrap dealers in October 2024 — has now been extended to more goods via Notification No. 07/2026-Central Tax (27 Oct 2026).
- The newly covered goods are used cooking oil (1518), waste & scrap of plastics (3915), waste & scrap of tyres (4004), and electrical/electronic waste & scrap (8549) — in addition to metal scrap (Chapters 72–81).
- Businesses dealing in these goods that are liable to deduct TDS must take TDS registration in FORM GST REG-07.
- The practical step: in REG-07, under Constitution of Business (Part B, Table 2), select "Others", then type the relevant category (e.g. "Used Cooking Oil Dealers", "Waste and Scrap of Plastics Dealers") in the text box that appears, and submit.
If you deal in scrap, used cooking oil or waste and have to deduct GST TDS on your purchases, there's a registration step you can't skip — and GSTN has just told you exactly how to do it. Following the extension of TDS to several new categories of goods, dealers now need to register as TDS deductors in FORM GST REG-07, with a specific way of declaring their business category on the portal. Here's who this applies to and the precise steps. (For the full picture of when you deduct TDS versus pay under reverse charge on these goods, see our detailed guide to the RCM and TDS changes.)
Background: TDS on scrap, now widened
GST TDS under Section 51 was first brought in for metal scrap through Notification No. 25/2024-Central Tax dated 9 October 2024, with a GSTN registration advisory following on 22 October 2024. Now, Notification No. 07/2026-Central Tax dated 27 October 2026 adds four more categories of goods to the TDS net:
| Goods newly covered under TDS | Heading |
|---|---|
| Used cooking oil | 1518 |
| Waste and scrap of plastics | 3915 |
| Waste and scrap of tyres | 4004 |
| Electrical and electronic waste and scrap | 8549 |
| Metal scrap (already covered since Oct 2024) | Chapters 72–81 |
Quick recap: when does TDS apply (vs reverse charge)?
On these goods, the mechanism depends on the supplier's registration status. Where the supplier is registered, the registered recipient does not pay under reverse charge — instead it deducts 2% TDS (1% CGST + 1% SGST, or 2% IGST) under Section 51 where the total value of taxable supply under a contract exceeds ₹2.5 lakh (excluding GST). Where the supplier is unregistered, the recipient pays under reverse charge instead. This registration step is about becoming a TDS deductor for the first situation.
How to take TDS registration in FORM GST REG-07
Dealers in these goods who are liable to deduct TDS must register as a tax deductor. The key, category-specific step is in Part B:
- Open FORM GST REG-07 (the TDS deductor registration form) on the GST portal.
- In Part B, Table 2, under "Constitution of Business", select "Others".
- A text box appears — type the relevant category, for example: "Used Cooking Oil Dealers", "Waste and Scrap of Plastics Dealers", "Waste and Scrap of Tyres Dealers", or "Electrical and Electronics Waste and Scrap Dealers".
- Complete the remaining details in REG-07 and submit the application.
Select "Others" — not a standard constitution type
This is the easy-to-miss part. Even though your business may be a proprietorship, partnership or company, for this TDS registration you choose "Others" under Constitution of Business and then specify the dealer category in the text box. Picking a normal constitution type here means your TDS registration won't correctly reflect the notified-goods category — follow the advisory's wording exactly.
What dealers should do
- Check whether you're a deductor. If you buy any of these goods from registered suppliers on contracts above ₹2.5 lakh, you're liable to deduct 2% TDS and need REG-07 registration.
- Register in REG-07 using "Others" + the correct dealer category, as above.
- Set up TDS compliance — deduct at 2%, deposit it, and file the monthly TDS return GSTR-7, issuing the TDS certificate to suppliers.
- Keep supplier-status records. Your purchase records should show each supplier's GST registration status, since that decides TDS versus reverse charge.
Frequently asked
Which goods now attract GST TDS?
Who has to take TDS registration for these goods?
What do I select under Constitution of Business in REG-07?
What is the TDS rate and threshold?
What return does a TDS deductor file?
Deal in scrap, used cooking oil or e-waste?
efiletax handles your GST TDS registration (REG-07), monthly GSTR-7 filing and supplier-status mapping — so you deduct correctly and stay compliant from day one.
Get your GST TDS registrationDisclaimer: This article summarises the GSTN advisory dated 1 November 2026 on TDS registration for dealers in scrap and other notified goods, following Notification No. 07/2026-Central Tax dated 27 October 2026 (which extends Section 51 TDS to used cooking oil, plastic and tyre waste/scrap and electrical/electronic waste/scrap, in addition to metal scrap under Notification No. 25/2024-Central Tax). It is for general understanding and is current as at the date of publication; please refer to the official advisory and notifications and verify the requirements applicable to your business on the GST portal before acting. This is not legal or tax advice — please consult a qualified professional. Talk to efiletax if you need help.