This CBIC Notification No. 06/2026-Central Tax, dated October 27, 2026, amends Notification No. 5/2017-Central Tax, which pertains to exemptions from GST registration under sub-section (2) of section 23 of the CGST Act, 2017.
Key Statutory Clarifications & Analysis
Point 1
The core amendment involves substituting the existing proviso in Notification No. 5/2017-Central Tax with a new one.
2. Registration & Revocation Procedures
The new proviso explicitly states that the exemption from GST registration will not apply to persons engaged in the supply of specific categories of goods, primarily various types of waste and scrap materials.
3. Registration & Revocation Procedures
This means that suppliers of these specified goods, even if their aggregate turnover is below the threshold, will now be mandatorily required to obtain GST registration.
Point 4
The notification comes into effect from November 1, 2026.
5. Classification & Tax Rate Applicability
This change aims to bring certain segments of the recycling and waste management industry under the GST net, potentially to improve tax compliance, track transactions, and prevent revenue leakage in these sectors.
6. Registration & Revocation Procedures
Taxpayers dealing in these goods must assess their registration obligations immediately.
Procedural Changes & Compliance Impact
- Substitution of the proviso in Notification No. 5/2017-Central Tax.: The exemption from GST registration, previously available under Notification No. 5/2017-Central Tax, will no longer apply to suppliers of specific waste and scrap goods, irrespective of their turnover.
- Mandatory GST registration for suppliers of 'used cooking oil' (HSN 1518), 'waste and scrap of plastics' (HSN 3915), 'waste and scrap of tyres' (HSN 4004), 'metal scrap' (Chapters 72-81), and 'electrical and electronics waste and scrap' (HSN 8549).: Businesses engaged in the supply of these specified goods must now mandatorily obtain GST registration, even if their aggregate turnover is below the standard registration threshold. This will increase their compliance burden and bring them into the formal GST ecosystem.
- Effective date of the amendment is November 1, 2026.: Taxpayers dealing in the listed goods need to initiate their GST registration process promptly to ensure compliance by the effective date, avoiding penalties for non-registration.