HSN Code for Scrap: Ferrous & Non-Ferrous Scrap Metal Covered

If you sell, purchase, or trade scrap in India, HSN code selection is not optional. One wrong HSN code on your invoice can lead to GST mismatch, e-way bill issues, ITC disputes, or unnecessary notices.

This guide explains the correct HSN code for scrap, with a special focus on scrap metal HSN codes like iron, steel, aluminium, copper, and more—plus GST rates and commonly used classifications.

What is the HSN Code for Scrap?

The HSN (Harmonized System of Nomenclature) code for scrap depends on the material type, not the word “scrap.”

So the HSN code changes based on whether the scrap is:

• Metal scrap (ferrous/non-ferrous)
• Plastic scrap
• Paper scrap      
• Rubber scrap
• E-waste scrap
• Lead/tin/zinc scrap, etc.

This is exactly why businesses often search for a single “scrap HSN code,” but in reality there are multiple valid HSN codes, depending on the scrap category.

HSN Code for Scrap Metal (Most Common)

When people search “HSN code for scrap,” they usually mean scrap metal, which is broadly classified into:

1. Ferrous Scrap (Iron & Steel Scrap)

HSN Code: 7204

• The HSN code for scrap iron metals in India is the most commonly used.
• It is used for the classification of metals, specifically ferrous waste and scrap, encompassing iron and/or steel scrap metals.

Examples of HSN7204 common sub-categories:

The sub-code most often used when billing for ferrous scrap is:

• 72044100 – Turnings, shavings, chips, filings, trimmings, stampings etc.
• 72044900 – Other ferrous waste and scrap (general classification)
• 72045000 – Remelting scrap ingots

Quick takeaway: If you deal in MS scrap/iron scrap/steel scrap, most of the time your base category is HSN 7204.

2. Non-Ferrous Scrap Metal (Copper, Aluminum, Zinc, etc.)

Non-ferrous scrap comes under different chapters depending on the metal.

Here are the most used ones:

Scrap Material	HSN Code
Copper scrap	7404
Aluminium scrap	7602
Nickel scrap	7503
Lead scrap	7802
Zinc scrap	7902
Tin scrap	8002

Best practice: If the scrap is not iron/steel, classify it by its metal family, not by business usage.

HSN Code for Scrap (Other Common Types)

Scrap trading in India is not limited to metal. Many businesses also deal with packaging waste, recycling, and industrial scrap.

HSN Code for Paper Scrap

HSN: 4707 – Recovered (waste and scrap) paper or paperboard

HSN Code for Plastic Scrap

Most plastic waste/scrap is classified under:

HSN: 3915

HSN Code for Rubber Scrap / Tyre Scrap

Generally classified under:

HSN: 4004

HSN Code for E-Waste Scrap

E-waste classification varies by product category, but many summaries treat it under notified categories, with 5% in specific cases.

Also Read: HSN code for manufacturing companies

GST Rate on Scrap in India (General Overview)

In most cases:

• Metal scrap GST = 18%
• Plastic scrap GST = 18%
• Paper scrap GST = 5% (as commonly referenced by GST rate guides)

For example, steel scrap (HSN 7204) is widely mentioned as 18% GST across standard references.

Note: Always confirm the GST rate based on your scrap’s exact description and invoice structure, especially for mixed scrap lots or special waste categories.

How to Choose the Correct HSN Code for Scrap (Practical Checklist)?

Before invoicing scrap, ask these 5 questions:

• What is the scrap made of? (iron, steel, copper, aluminium, etc.)
• Is it ferrous or non-ferrous?
• Is it industrial scrap or consumer scrap? (the material still decides HSN)
• Is it mixed scrap? (may require separate line items)
• Does it match standard scrap descriptions? (turnings, filings, remelting scrap, etc.)

If the scrap is mostly iron/steel, HSN 7204 is usually correct.

Example: HSN Code for Scrap Metal Invoice (Simple Format)

Here’s a clean invoice line item example:

Item: MS Scrap (Ferrous waste & scrap)

• HSN: 7204
• GST: 18%
• Unit: Kg / MT
• Remarks: Ferrous waste and scrap (as per classification)

For copper scrap:

• Item: Copper scrap
• HSN: 7404
• GST: 18%

Read More: How to find the HSN code for your goods?

Conclusion

Choosing the right HSN code for scrap is not just that—it’s also very important for your company’s compliance with GST laws, for creating accurate sales invoices, for filing GST returns on your purchases, and for having e-way bill approvals processed without delay. Since scraps are categorized according to what material they are made from, you cannot rely on one single universal HSN code for all types of scraps. 

If you sell scrap Iron and Steel, or Iron and Steel Scrap, the standard HSN classification in India is HSN 7204; however, as a scrap dealer, you may also sell non-ferrous (copper, aluminum, etc.) scrap as well. In this case, you would need to assign a code that identifies the specific type of metal you sold; copper scrap gets HSN code 7404, and aluminum scrap gets HSN code 7602. Paper scrap gets HSN code 4707; plastic scrap gets HSN code 3915; and rubber scrap gets HSN code 4004. When in doubt, verify all the information on the scrap material prior to creating a sales invoice. 

It is advisable to check the actual makeup of the scrap and also make sure the invoice descriptions are clear, complete and consistent with the product description. You may have to verify mixed scrap prior to invoicing in order to avoid future disputes regarding the correct HSN code used.

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