[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)  

Notification No. 07/2026-Central Tax 

New Delhi, the 27

th

 October, 2026 

G.S.R. 

……

 (E).-In exercise of the powers conferred by sub-section (3) of section 1 read with section 51 

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 further amendment in the notification of the Government of India in 
the Ministry of Finance (Department of Revenue), No. 50/2018-Central Tax, published in the Gazette of India, 
Extraordinary, Part II, Section 3, Sub-section (i), 

vide

 number G.S.R. 868(E), dated the 13th September, 2018, 

namely: - 

In the said notification, for clause (d), the following clause shall be substituted, namely: - 

“(d) 

any registered person receiving supply of any of the following goods from another registered person, 

namely: - 

(i) 

used cooking oil falling under heading 1518 of the First Schedule to the Customs Tariff 
Act, 1975 (51 of 1975); 

(ii)  waste and scrap of plastics falling under heading 3915 of the said First Schedule; 

(iii)  waste and scrap of tyres falling under heading 4004 of the said First Schedule; 

(iv)  metal scrap falling under Chapters 72 to 81 of the said First Schedule; or 

(v)  electrical  and  electronics  waste  and  scrap  falling  under heading  8549  of  the  said  First 

Schedule”

. 

2. 

This notification shall come into force with effect from the 1

st

 day of November, 2026. 

[F. No. CBIC-190354/142/2026-TRU] 

(Dheeraj Sharma) 

Under Secretary 

Note:- The principal notification No. 50/2018-Central Tax was published in the Gazette of India, Extraordinary, 
Part  II,  Section  3,  Sub-section  (i), 

vide

  number  G.S.R.  868(E),  dated  the  13th  September,  2018  and  was  last 

amended by notification No. 25/2024-Central Tax, dated the 9th October, 2024, published in the Gazette of India, 
Extraordinary, Part II, Section 3, Sub-section (i), 

vide

 number G.S.R. 629(E), dated the 9th October, 2024. 

Notification No. 07/2026–Central Tax: Detailed Description and Analysis

Effective 1 November 2026 | GST TDS | Specified waste and scrap goods

1. Notification Overview

Notification No. 07/2026–Central Tax, dated 27 October 2026, was issued by the Government of India, Ministry of Finance (Department of Revenue). It substitutes clause (d) in Notification No. 50/2018–Central Tax, dated 13 September 2018. The substitution concerns registered persons receiving supplies of specified goods from other registered persons.

2. Purpose and Scope of the Amendment

The notification replaces the existing clause (d) with a new clause covering any registered person receiving a supply of the five specified categories of goods from another registered person. It is an amendment to the framework of persons notified under Section 51 of the Central Goods and Services Tax Act, 2017 (GST Tax Deducted at Source).

Scope clarification: The supplied notification does not reproduce the earlier wording of clause (d). Accordingly, the exact additions or removals relative to the prior version cannot be established from this notification alone.

3. Goods Specifically Covered

The classifications above are taken directly from the substituted clause (d). Correct classification is important because the notification identifies goods by tariff heading or chapter, not merely by a commercial description.

4. Legal Context: Section 51 of the CGST Act

Section 51 establishes the GST TDS framework for specified persons. Notification No. 50/2018–Central Tax identifies classes of persons for this purpose; Notification No. 07/2026 changes its clause (d). The notification itself does not set out the complete mechanics of GST TDS, including the deduction rate, monetary threshold, payment deadline, returns or exceptions.

Important distinction: Being a registered recipient of one of the listed goods is relevant to the notified category, but whether TDS must actually be deducted on a particular payment must be determined under Section 51 and the applicable rules and conditions.

5. Potential Impact on Businesses

The amendment is relevant to registered businesses that receive supplies of the listed goods from other registered persons, including scrap processors, recycling businesses, metal scrap buyers, waste-management enterprises, and purchasers of electrical or electronic scrap. Such businesses should review their purchase classification, vendor GST registration details, and their potential status as GST TDS deductors.

Businesses should not assume that every purchase of scrap automatically requires deduction. The relevant goods, registration status, contractual value and other legal conditions should be checked for each transaction.

6. GST TDS Compliance Considerations

Under the general Section 51 framework, GST TDS is ordinarily calculated at an aggregate rate of 2% for qualifying supplies (1% CGST plus 1% SGST for qualifying intra-State supplies, or 2% IGST for qualifying inter-State supplies). The statutory contract-value threshold is generally more than ₹2,50,000, subject to the relevant conditions and exclusions. These general rules are provided for explanatory context; they are not stated in Notification No. 07/2026 itself.

Where a deduction obligation applies, the deductor should assess GST TDS registration requirements, deduction and deposit timelines, GSTR-7 reporting, and related recordkeeping. Taxable value, place-of-supply rules and statutory exceptions can affect the outcome. Confirm the currently applicable legal provisions and portal procedures before filing.

7. Illustrative Calculation

Assume a registered business purchases qualifying plastic scrap classified under heading 3915 from another registered person, and all relevant GST TDS conditions are satisfied. For an illustrative taxable contract value of ₹5,00,000, applying a total TDS rate of 2% would produce a deduction of ₹10,000.

Illustration only: The example is not a ruling on the applicability of TDS to any specific transaction. Actual deductions depend on the law and facts of the supply.

8. Accounting and TallyPrime Considerations

Accounting teams should identify affected stock items and tariff classifications, verify supplier GSTINs, review qualifying contracts, and maintain clear records of any TDS deducted and deposited. Businesses using TallyPrime can review their ledger structure, purchase voucher entries, tax ledgers, and reconciliation reports to determine how GST TDS should be reflected in their existing configuration.

Specific software functionality and setup steps may vary by TallyPrime version and the business configuration. This notification does not prescribe any particular accounting software or implementation method.

9. Effective Date and Prior Amendment

The notification expressly states that it comes into force on 1 November 2026. Its explanatory note identifies Notification No. 25/2024–Central Tax, dated 9 October 2024, as the last amendment to the principal notification before this change.

10. Compliance Review Checklist

•  Identify purchases of the five notified categories of goods.

•  Check HSN headings or chapters and supplier GST registration.

•  Review the applicability of Section 51 for relevant contracts and payments.

•  Check GST TDS registration, payment and return obligations where applicable.

•  Update internal purchase controls, accounting treatment and staff guidance before the effective date.

11. Conclusion

Notification No. 07/2026–Central Tax substitutes clause (d) of Notification No. 50/2018–Central Tax and specifies five categories of goods supplied by registered persons to registered recipients. The amendment is effective from 1 November 2026. Businesses dealing in these categories should evaluate their GST TDS position using the notification together with Section 51 of the CGST Act and the applicable rules.

12. Frequently Asked Questions

When does Notification No. 07/2026–Central Tax take effect?
It takes effect on 1 November 2026.

Which goods are covered?
Used cooking oil (1518), plastic waste and scrap (3915), tyre waste and scrap (4004), metal scrap (Chapters 72–81), and electrical and electronic waste and scrap (8549).

Does the notification itself prescribe a new GST TDS rate?
No. The text substitutes clause (d) of the earlier notification. The general GST TDS rate is governed by the applicable statutory framework.

Does every purchase of scrap require TDS?
Not necessarily. The applicability of Section 51 and its conditions must be assessed for the particular supply.

What is the main action for businesses?
Identify transactions involving the notified goods and review GST TDS obligations and accounting processes before the effective date.

Editorial note: The first section reproduces the supplied notification. Sections 1–12 are an explanatory analysis prepared for readers, not part of the official notification. Consult the applicable legislation and professional advice for transaction-specific compliance decisions.