On 8th October 2024, the Ministry of Finance released Notification No. 06/2024-Integrated Tax (Rate), which amends the Integrated Goods and Services Tax (IGST) rates under section 5(3) of the IGST Act, 2017. This amendment introduces a new entry related to the reverse charge mechanism (RCM) for transactions involving metal scrap, applicable to specified categories (72, 73, 74, 75, 76, 77, 78, 79, 80, or 81). According to the revised regulation, sales of metal scrap by unregistered persons will require registered purchasers to assume the tax liability, thereby clarifying tax obligations in this sector. The changes are aimed at improving compliance and accountability in the metal scrap market. This notification will take effect on 10th October 2024 and serves as an update to the previous Notification No. 4/2017-Integrated Tax (Rate), first published on 28th June 2017, with the most recent amendment occurring in October 2023.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 06/2024-Integrated Tax (Rate) | Dated: 8th October, 2024
G.S.R. 616(E).—In exercise of the powers conferred by sub-section (3) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), notification No. 4/2017- Integrated Tax (Rate), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 669(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, after S. No. 7 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) | (5) |
| “8.
|
72, 73, 74, 75, 76, 77, 78, 79, 80 or 81 | Metal scrap | Any unregistered person | Any registered person”. |
2. This notification shall come into force on the 10th day of October, 2024.
[F. No. CBIC-190354/149/2024-TO(TRU-II)]
AMREETA TITUS, Dy. Secy.
Note: – The principal notification No. 4/2017- Integrated Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 669(E), dated the 28thJune, 2017 and was last amended by notification No. 22/2023- Integrated Tax (Rate), dated the 19th October, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 781(E), dated the 19th October, 2023.
