Summary: The Central Board of Indirect Taxes and Customs (CBIC) has introduced significant GST changes effective from 1 November 2026 through Notifications 2/2026 to 10/2026-Central Tax (Rate), alongside amendments to registration, tax deduction at source, e-invoicing and the CGST Rules. The changes include reduction of GST on retreaded tractor tyres from 18% to 5%, exemption for psyllium seeds, revised input tax credit conditions for hotels, restaurants, catering and electric vehicle transport, and additional exemptions for specified services. The reverse charge mechanism has been extended to supplies of used cooking oil, plastic waste, tyre scrap and electronic waste by unregistered suppliers to registered recipients. The registration and GST TDS framework previously applicable to metal scrap has also been extended to these additional categories. Registered buyers must examine their liability to deduct 2% GST TDS on qualifying purchases exceeding ₹2.5 lakh per contract, while purchases from unregistered suppliers may attract reverse charge. Other important amendments address e-commerce delivery services, cab rentals, toll rights, post-supply discounts, refunds and special procedures for Toll-Operate-Transfer concessionaires. Businesses must update their tax classifications, assess input tax credit eligibility, verify suppliers’ registration status and apply the transitional provisions of Section 14 of the CGST Act to supplies occurring around the effective date.
- GST Rate Changes from 1 November 2026: CBIC Notifications, Scrap TDS and Exemptions
- The notifications at a glance
- Rate changes, item by item
- New exemptions
- Scrap and e-waste: the metal scrap model, extended
- What buyers and sellers of scrap must do
- Registered buyers
- Sellers
- Supplies that straddle 1 November
- What did not change, and a checklist
GST Rate Changes from 1 November 2026: CBIC Notifications, Scrap TDS and Exemptions
CBIC’s Notifications 2/2026 to 10/2026-Central Tax (Rate), issued on 27 October 2026, mostly on the 57th GST Council‘s recommendations, changed rates and exemptions from 1 November 2026. Notifications 6/2026 and 7/2026-Central Tax brought registration and a 2% GST TDS for scrap. This article lists every change with its notification entry and what practitioners should do now.
The notifications at a glance
Nine Central Tax (Rate) notifications, 2/2026 to 10/2026, carry most of the 57th GST Council‘s decisions; 5/2026 and 10/2026 are a wording fix and a special procedure. They are printed 27 October 2026; CBIC’s portal lists 28 October. Five Central Tax notifications dated 26 and 27 October change procedure. All take effect on 1 November 2026 unless stated.
| Notification | Amends | What it does |
|---|---|---|
| 2/2026-CT(R) | 9/2025-CT(R) (rates of goods) | Retreaded tractor tyres 18% to 5% (new Schedule I S. No. 272A). The fertiliser entry (S. No. 237) gains an Explanation on sea-weed extract based bio-stimulants. |
| 3/2026-CT(R) | 10/2025-CT(R) (exempt goods) | Psyllium (isabgol) seeds, 1211 90 13, exempt (new S. No. 87A). |
| 4/2026-CT(R) | 4/2017-CT(R) (reverse charge on goods) | Reverse charge on used cooking oil, plastic waste and scrap, tyre waste and scrap, and e-waste sold by an unregistered person to a registered person (S. Nos. 2A, 3B, 3C, 9). |
| 5/2026-CT(R) | 26/2018-CT(R) | Wording only: who counts as a “Nominated Agency” for gold, silver and platinum supplied for jewellery exports. |
| 6/2026-CT(R) | 11/2017-CT(R) (rates of services) | New 5%/18% entries for electric passenger transport and electric vehicle rental; delivery through e-commerce operators at 5% without credit; hotels up to ₹7,500, restaurants, railway and outdoor catering stay at 5% but may now take credit of same-line input services. |
| 7/2026-CT(R) | 12/2017-CT(R) (exempt services) | New exemptions 31AA, 42A and 54A, clause 15(aa), and seeds for sowing added to 24B. Entry 21A no longer covers goods transport agency services for goods sold through e-commerce operators. |
| 8/2026-CT(R) | 13/2017-CT(R) (reverse charge on services) | S. No. 15, cab hire with fuel to a body corporate: reverse charge applies unless the supplier charges CGST at 9% (was 6%). |
| 9/2026-CT(R) | 17/2017-CT(R) (section 9(5)) | The e-commerce operator pays the tax on all delivery services other than postal and courier (earlier local delivery only). |
| 10/2026-CT(R) | New, under section 148 | Special procedure: Toll-Operate-Transfer concessionaires pay tax on operation and maintenance services as amounts are debited from the escrow account. |
| 3/2026-CT | Finance Act, 2026 | Sections 153 to 155 in force: post-supply discounts (section 15(3)(b), section 34(1)) and refunds (section 54(6), 54(14)). |
| 4/2026-CT | 13/2020-CT | From 1 January 2027, e-invoices also for inward supplies taxed under reverse charge from unregistered persons, and for import of services. |
| 5/2026-CT | CGST Rules | CGST (Amendment) Rules, 2026: new rule 14B, registration rules 19 to 21 substituted, GSTR-5 due on the 13th; some parts from 1 December 2026, 1 January 2027 or 1 April 2027. |
| 6/2026-CT | 5/2017-CT | Suppliers of used cooking oil, plastic, tyre and metal scrap, and e-waste must register even if all their supplies are under reverse charge. |
| 7/2026-CT | 50/2018-CT | 2% GST TDS on purchases of the same goods from registered persons, above ₹2.5 lakh a contract. |
The Integrated Tax notifications mirror these; 7/2026-IT(R) also adds IGST-only entry 10M (below).
Rate changes, item by item
Two goods and four service entries change rate or condition. “Same-line credit” means input tax credit only on services bought from another supplier of the same service; no other credit may be taken at the 5% rate.
| Item | HSN/SAC | Up to 31 Oct 2026 | From 1 Nov 2026 | Notification, entry |
|---|---|---|---|---|
| Retreaded tractor tyres | 4012 | 18% (Sch. II, S. No. 138) | 5% | 2/2026-CT(R), Sch. I, S. No. 272A |
| Psyllium (isabgol) seeds | 1211 90 13 | 5% if frozen or dried; Nil if fresh or chilled | Nil | 3/2026-CT(R), S. No. 87A |
| Delivery services (not postal or courier) supplied through an e-commerce operator by a supplier not liable to register, or for goods sold through an e-commerce operator | 9968 | 18% (local delivery only) | 5% without credit | 6/2026-CT(R), entry 12(iii) |
| Transport of passengers by electric vehicle, battery charging included in the fare | 9964 | No separate entry | 5% with same-line credit only, or 18% | 6/2026-CT(R), entry 8(vib) |
| Renting of an electric vehicle with charging included, for passengers or for goods | 9966 | No separate entry | 5% with same-line credit only, or 18% | 6/2026-CT(R), entries 10(ib) and 10(ic) |
| Hotel rooms up to ₹7,500 a day; restaurants not in specified premises; railway catering; outdoor catering | 9963 | 5% without credit | 5% with same-line credit | 6/2026-CT(R), entries 7(i) to 7(v) |
The fertiliser entry (3101) stays at 5%; its new Explanation covers sea-weed extract based bio-stimulants.
For hotels, outdoor catering and electric vehicles, the same-line credit is capped: if the other supplier charged central tax above 2.5%, credit stops at 2.5%. The notification’s own example is a hotel that buys a ₹10,000 room from another hotel charging 9% CGST (₹900). It may take only ₹250, which is 2.5% of ₹10,000. Restaurants and railway catering have no such cap.
New exemptions
| Service | SAC | Entry |
|---|---|---|
| Storage or warehousing of seeds meant for sowing (cereals, pulses, fruits and vegetables were already exempt) | 9967 / 9985 | 12/2017-CT(R) 24B, as amended by 7/2026-CT(R) |
| Curing of coffee supplied to coffee cultivators | 9986 | 54A |
| Services of the Seamen’s Provident Fund Organisation to members | 9971 / 9991 | 31AA |
| Grant of toll rights (right of way, licence to collect toll) by the Central or a State Government, a local authority or a government entity | 9973 | 42A |
| Helicopter travel on a seat-share basis to or from the North-Eastern States, Sikkim or Bagdogra (helipads included) | 9964 | 15(aa) |
| Import of services by the Indian establishment of a foreign shipping company from a related person or its other establishments abroad, without consideration (IGST only) | — | 9/2017-IT(R) 10M, inserted by 7/2026-IT(R) |
Scrap and e-waste: the metal scrap model, extended
Since 10 October 2024, metal scrap (Chapters 72 to 81) has carried three rules: reverse charge on purchases from unregistered sellers (6/2024-CT(R)), compulsory registration of its suppliers (24/2024-CT) and 2% GST TDS on purchases from registered sellers (25/2024-CT). From 1 November 2026 the same three rules cover four more goods.
| Rule | Goods covered | Who acts | Notification |
|---|---|---|---|
| Reverse charge | Used cooking oil (1518), plastic waste and scrap (3915), tyre waste and scrap (4004), electrical and electronic waste and scrap (8549); metal scrap already | The registered buyer pays the GST when the seller is unregistered | 4/2026-CT(R), S. Nos. 2A, 3B, 3C and 9 |
| Registration | The same goods, and metal scrap | The seller: the exemption in 5/2017-CT for persons whose supplies are all under reverse charge no longer applies, so the seller registers once turnover crosses the threshold | 6/2026-CT |
| GST TDS | The same goods, and metal scrap | A registered buyer deducts 2% (1% CGST + 1% SGST/UTGST, or 2% IGST) from payments to a registered seller; nothing where the contract value is up to ₹2.5 lakh | 7/2026-CT, substituting clause (d) of 50/2018-CT; the rate and threshold come from section 51 |
The effect is a closed loop. An unregistered collector selling to a recycler triggers reverse charge; once the collector registers, the recycler deducts TDS instead on contracts above ₹2.5 lakh.
What buyers and sellers of scrap must do
Registered buyers
- Buying from an unregistered seller: pay the GST under reverse charge. Issue a self-invoice (section 31(3)(f)) and a payment voucher (section 31(3)(g)), pay the tax in cash, and claim the credit afterwards.
- Buying from a registered seller, contract value above ₹2.5 lakh (excluding GST): deduct 2% from the payment. Register as a tax deductor under section 24(vi) if not already registered (FORM GST REG-07), file GSTR-7 by the 10th of the next month, and let the seller see the TDS certificate.
- Check every supplier’s status at the time of purchase. The rule that applies turns on whether the seller is registered.
- Plan for e-invoicing: from 1 January 2027, buyers who must issue e-invoices also report inward supplies taxed under reverse charge from unregistered persons (4/2026-CT).
Sellers
- Register once aggregate turnover crosses the threshold, even if every buyer pays the tax under reverse charge (6/2026-CT).
- Once registered, charge GST on the invoice. Expect 2% TDS on contracts above ₹2.5 lakh and claim it in the electronic cash ledger after the buyer files GSTR-7.
Supplies that straddle 1 November
Section 14 of the CGST Act decides the rate when the supply, the invoice and the payment fall on different sides of a rate change. In short: of those three events, the two on the same side of 1 November decide the rate. Read the section and its proviso on bank credits before advising on a live case.
Worked examples for retreaded tractor tyres (18% up to 31 October 2026, 5% from 1 November 2026):
| Supply | Invoice | Payment | Rate | Why (section 14) |
|---|---|---|---|---|
| 28 Oct | 28 Oct | 5 Nov | 18% | Supply before; invoice before, payment after: date of invoice, 14(a)(ii) |
| 30 Oct | 3 Nov | 4 Nov | 5% | Supply before; invoice and payment after: the earlier of the two, 14(a)(i) |
| 4 Nov | 30 Oct | 31 Oct | 18% | Supply after; invoice and payment before: the earlier of the two, 14(b)(ii) |
| 4 Nov | 30 Oct | 6 Nov | 5% | Supply after; invoice before, payment after: date of payment, 14(b)(i) |
The same test applies to every change in this list, including the new exemptions, where the “new rate” is Nil.
What did not change, and a checklist
Hotel rooms up to ₹7,500 a day and restaurants outside specified premises stay at 5%; only their credit condition eased. No change was made to late fees or interest. Who must issue e-invoices is unchanged (aggregate turnover above ₹5 crore).
A checklist for the next return cycle:
- Update item masters: retreaded tractor tyres (4012) at 5%, psyllium seeds (1211 90 13) at Nil.
- Restaurant, hotel and catering clients at 5%: review which same-line input services now qualify for credit from 1 November.
- Scrap and e-waste buyers: list unregistered suppliers, set up self-invoices and payment vouchers, and get a TDS registration if needed.
- Scrap and e-waste sellers: register once turnover crosses the threshold.
- Delivery partners selling through apps: the e-commerce operator now pays the tax on all delivery other than postal and courier (9/2026-CT(R)).
- Companies hiring cabs with fuel: reverse charge applies unless the supplier’s invoice shows CGST at 9% (8/2026-CT(R)).
- Post-supply discounts: from 1 November a credit note with the buyer’s credit reversal is enough; no prior agreement is needed (section 15(3)(b), 3/2026-CT).
- Non-resident taxable persons: GSTR-5 is now due on the 13th (rule 63, 5/2026-CT).
- Invoices dated around 1 November: apply section 14.
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This article is for information only. Confirm each rate and condition in the notification before you invoice, file or advise.
