Different grades of scrap (e.g., castings, turnings, or borings) may be tracked as separate inventory items, but they typically share the same HSN family (7602) because they are all intended for metal recovery or recycling. Using the correct HSN code is critical to avoid penalties during audits and ensure accurate data in GSTR-1 filings
As of 2025, the GST rate for all categories of aluminum waste and scrap in India is standardized at 18%. This applies to various forms of industrial discards, used products, and secondary materials categorized under Chapter 76 of the Harmonized System of Nomenclature (HSN).
| HSN Code | Item Categorization & Specifics | Tax Bracket (GST) |
|---|---|---|
| 7602.00.10 | Aluminum Recyclables: Specialized scrap including pristine lithographic sheets, unsoiled low-copper clippings, and assorted solids (e.g., ISRI codes Tablet, Tabloid, Taboo, Taint). | 18% |
| 7602.00.11 | Industrial By-products: Turnings, shavings, chips, milling waste, and filings; includes waste from coated or bonded sheets and foil under 0.2mm. | 18% |
| 7602.00.19 | Factory Rejects: Other industrial discards and secondary production rejects not classified in specific sub-headings. | 18% |
| 7602.00.90 | Residual Salvage: Broad category for "Other" aluminum waste and scrap materials not elsewhere specified. | 18% |
| 7601.20.91 | Secondary Ingot/Liquid: Unwrought aluminum alloys in liquid or ingot form derived specifically from remelted waste and scrap. | 18% |
| 7603.20.00 | Processed Powder/Flakes: Aluminum powders of lamellar structure and metallic flakes obtained from secondary processing. | 18% |
In the UK, HSN codes are referred to as Commodity Codes. While they share the same first six digits as the global Harmonized System (HS), the UK uses a 10-digit structure for imports and an 8-digit structure for exports to classify goods more specifically
UK applies a 20% Standard Rate VAT.
| HSN Code | Description |
|---|---|
| 7601: ALUMINIUM AND ARTICLES THEREOF | |
| 7601000000 | Unwrought aluminium |
| 7601100000 | Aluminium, not alloyed |
| 7601200000 | Aluminium alloys |
| 7601201000 | Primary |
| 7601209000 | Secondary |
| 7601209100 | In ingots or in liquid state |
| 7601209900 | Other |
| 7601209910 | Sheets and billets of secondary aluminium alloy containing lithium |
| 7602: Aluminium waste and scrap | |
| 7602001100 | Waste: Turnings, shavings, chips, milling waste, sawdust and filings; waste of coloured, coated or bonded sheets and foil (<0.2mm) |
| 7602001900 | Other (including factory rejects) |
| 7602009000 | Scrap |
| 7603: Aluminium powders and flakes | |
| 7603100000 | Powders of non-lamellar structure |
| 7603200000 | Powders of lamellar structure; flakes |
| 7604: Aluminium bars, rods and profiles | |
| 7604100000 | Of aluminium, not alloyed |
| 7604101000 | Bars and rods |
| 7604109000 | Profiles |
| 7604109010 | For use in certain types of aircraft (specific manufacture number) |
| 7604109020 | Conical shapes for reinforcing lateral rudders (aircraft use) |
| 7604210000 | Hollow profiles of aluminium alloys |
| 7604291000 | Bars and rods (alloyed) |
| 7604299000 | Profiles (alloyed) |
