Looking for expert help with GST on PVC pipes? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key Takeaways
- PVC, CPVC and HDPE pipes and fittings are 18% GST (heading 3917, Notification 9/2025-CT(R), Sch II S. No. 118). Water tanks, buckets, crates, chairs and most moulded goods are also 18%.
- Your main inputs are 18% too: PVC, PE and PP resin (S. No. 114), plastic scrap (S. No. 116), moulds and moulding machines (S. Nos. 465, 462).
- New from 1 November 2026: plastic scrap bought by a registered unit from an unregistered seller is under reverse charge at 18% (Notification 04/2026-CT(R)). Self-invoice within 30 days.
- TCS on scrap you sell is 2% from 1 April 2026 (Section 394, Income-tax Act 2025), unless the buyer gives Form No. 127 for manufacturing use.
- New moulding or extrusion machines can get 20% additional depreciation (Section 33(8), Income-tax Act 2025).
What is the GST rate on PVC pipes in India? PVC pipes and their fittings are taxed at 18% GST under heading 3917, Schedule II, S. No. 118 of Notification 9/2025-Central Tax (Rate), in force from 22 September 2025. That's 9% CGST plus 9% SGST within a State, or 18% IGST across States. The rate notifications issued on 27 and 28 October 2026 don't change it.
An extrusion unit making agricultural PVC pipes, a moulder turning out buckets and crates, and a recycler converting scrap into regrind all run into the same tax questions: which HSN code and rate goes on each product, how to handle scrap bought from kabadiwalas, and what happens to the rejects and runners you sell. This post covers GST rates, registration, composition, the new reverse charge on plastic scrap, e-invoicing and income tax for FY 2025-26 (AY 2026-27) under the Income-tax Act 1961, with the Income-tax Act 2025 sections that apply from 1 April 2026. It's written for owners of pipe, moulding and recycling units and the accountants who file for them. If you sell pipes as a dealer rather than make them, our hardware and paint shop guide fits you better.
What GST rate do you charge on pipes and moulded goods?
Almost everything a plastics unit makes is 18%. GST 2.0 (from 22 September 2025) kept Chapter 39 in the 18% schedule, so the job is mostly picking the right HSN code for your invoice, not finding a lower rate.
Tax Rate Chart
GST Rates for Pipe and Plastic Moulding Units (from 22 September 2025)
PVC, CPVC, HDPE pipes, hoses and fittings (3917)
9/2025-CT(R) Sch II, S. No. 118
Water tanks and other builders' ware of plastics (3925)
9/2025-CT(R) Sch II, S. No. 126
Buckets, mugs, tubs, kitchenware (3924)
9/2025-CT(R) Sch II, S. No. 125
Crates, bottles, jars, caps and closures (3923)
9/2025-CT(R) Sch II, S. No. 124
Plastic chairs (9401) and other furniture (9403)
9/2025-CT(R) Sch II, S. Nos. 610, 612
Feeding bottles, plastic beads (3926)
9/2025-CT(R) Sch I, S. No. 265
Plastic bangles (3926)
10/2025-CT(R) S. No. 119
Source: CBIC Notifications 9/2025-CT(R) and 10/2025-CT(R); CT(R) list checked up to 10/2026-CT(R) (27-28 October 2026), none of which amends these entries
Example: you supply a builder in your own State with uPVC pipes worth Rs 4,00,000 and fittings worth Rs 50,000.
| Line | Value | Rate | CGST | SGST |
|---|---|---|---|---|
| uPVC pipes (3917) | Rs 4,00,000 | 18% | Rs 36,000 | Rs 36,000 |
| Fittings (3917) | Rs 50,000 | 18% | Rs 4,500 | Rs 4,500 |
| Total | Rs 4,50,000 | Rs 40,500 | Rs 40,500 |
The invoice total is Rs 5,31,000. If the builder were in another State, you'd charge Rs 81,000 as IGST instead.
Drip laterals: check the classification. Notification 9/2025-CT(R) puts "drip irrigation system including laterals" under heading 8424 at 5% (Sch I, S. No. 431), while plain plastic tubes stay at 18% under 3917. If you extrude lateral pipes, whether a lateral sold on its own falls under 8424 or 3917 is a classification question. We haven't found a CBIC circular on it, so settle it with your accountant before billing at 5%. Our drip and sprinkler dealers guide covers the dealer side.
What GST do you pay on resin, moulds and machines?
Your inputs mostly sit at the same 18%, which keeps credit in step with output tax.
| Input | HSN | Rate | Entry in 9/2025-CT(R) |
|---|---|---|---|
| PVC, PE, PP resin and other polymers in primary form | 3901 to 3913 | 18% | Sch II, S. No. 114 |
| Plastic waste, parings and scrap (regrind feedstock) | 3915 | 18% | Sch II, S. No. 116 |
| Compound plasticisers and stabilisers for plastics | 3812 | 18% | Sch II, S. No. 99 |
| Plastic sheets, film and strip | 3920, 3921 | 18% | Sch II, S. Nos. 121, 122 |
| Extruders and moulding machines | 8477 | 18% | Sch II, S. No. 462 |
| Moulds for plastics | 8480 | 18% | Sch II, S. No. 465 |
Because output and main inputs are both 18%, a pipe or moulding unit rarely has the inverted-duty credit build-up that 5% manufacturers face. If you make some 5% items (feeding bottles, beads) alongside 18% goods, the inverted duty refund guide explains when a refund is possible.
Plastic scrap reverse charge from 1 November 2026
This is the change most recyclers and moulders need to act on now. Notification 04/2026-Central Tax (Rate), dated 27 October 2026, inserts S. No. 3B in Notification 4/2017-CT(R): waste and scrap of plastics (3915), supplied by any unregistered person to any registered person, is taxed under reverse charge from 1 November 2026. The same notification adds tyre scrap (4004), used cooking oil (1518) and electrical and electronic waste (8549).
Until now, when you bought PET bottles, HDPE drums or PP crates from a kabadiwala without a GSTIN, there was no GST on the purchase and no credit. From 1 November, you pay the 18% yourself.
Step-by-Step Guide
Buying Plastic Scrap From an Unregistered Seller (from 1 November 2026)
Check the seller's GSTIN
If the seller is registered, they charge 18% on their invoice as usual. Reverse charge applies only when the seller is unregistered and you are registered.
Issue a self-invoice within 30 days
Section 31(3)(f) of the CGST Act requires you to issue an invoice for goods received from an unregistered supplier. Rule 47A sets the limit at 30 days from receipt.
Issue a payment voucher when you pay
Section 31(3)(g) requires a payment voucher at the time you pay the seller.
Fix the time of supply
Under Section 12(3), it's the earliest of the date you receive the goods, the date you pay, or 30 days after the seller's bill.
Pay the tax in cash
Reverse charge tax isn't 'output tax' (Section 2(82)), so you can't pay it from your credit ledger (Section 49(4)). Pay it through the cash ledger in GSTR-3B.
Take the credit in the same return
If the scrap is used in your business, the tax you paid is input tax credit you can use against your 18% sales.
Source: Notification 04/2026-CT(R) amending 4/2017-CT(R); CGST Act Sections 2(82), 12(3), 31(3)(f)-(g), 49(4); CGST Rule 47A
Example: a moulding unit in Hyderabad receives 2,000 kg of PP crate scrap from an unregistered kabadiwala on 10 November 2026 at Rs 40 a kg, so Rs 80,000. The unit issues a self-invoice by 10 December, pays CGST Rs 7,200 and SGST Rs 7,200 (Rs 14,400 in all) in cash with its November GSTR-3B, and takes Rs 14,400 as credit in the same return. The cost doesn't rise, but you need cash for the tax up front and a clean paper trail for every lot.
E-invoicing reaches these self-invoices from 1 January 2027. If your aggregate turnover in any year since 2017-18 crossed Rs 5 crore, you already issue e-invoices for B2B sales (Notification 10/2023-Central Tax). Notification 04/2026-Central Tax extends this, from 1 January 2027, to supplies you receive from unregistered persons where you pay tax on reverse charge. Our e-invoicing guide covers the IRP steps, and the reverse charge guide lists the other RCM items.
Deadline Timeline
Plastic Scrap and Reverse Charge: Key Dates
GST 2.0 rates in force
Plastic scrap (3915) and pipes (3917) both 18% under 9/2025-CT(R)
TCS on scrap sales becomes 2%
Section 394(1), Table Sl. No. 4, Income-tax Act 2025 (was 1% under Section 206C(1))
Reverse charge on plastic scrap from unregistered sellers
Notification 04/2026-CT(R), S. No. 3B in 4/2017-CT(R)
E-invoice for reverse charge purchases from unregistered persons
Notification 04/2026-Central Tax, for units already in e-invoicing
Source: CBIC Notifications 9/2025-CT(R), 04/2026-CT(R), 04/2026-CT; Income-tax Act 2025 as amended by Finance Act 2026
Registration and the composition scheme
Registration. A unit that only makes and sells its own goods within its State can wait until Rs 40 lakh under Notification 10/2019-Central Tax, except in the States that opted out: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Those use the Section 22 limit of Rs 20 lakh, or Rs 10 lakh where the special category proviso applies. Section 24 makes registration compulsory from the first inter-State sale of goods, and pipe units usually sell across State lines. Our registration limit guide has the detail, and our GST registration service files the application.
Composition. Under Notification 14/2019-Central Tax, a unit with previous-year aggregate turnover up to Rs 1.5 crore (Rs 75 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand) can opt for composition. Plastic goods aren't on the excluded list. A manufacturer pays 0.5% CGST plus 0.5% SGST on turnover (Rule 7). Two catches for a plastics unit: you can't sell outside your State (Section 10(2)(c)), and reverse charge still applies, because Section 10(1) is "subject to the provisions of sub-sections (3) and (4) of section 9". So a composition moulder buying scrap from kabadiwalas pays 18% on it from 1 November and can't take credit (Section 10(4)). Builders and distributors who want credit won't buy from a composition unit either. Our composition scheme guide covers the conditions.
E-way bills. Pipes move in truckloads, and a consignment above Rs 50,000 needs an e-way bill (Rule 138(1), CGST Rules). Generate it before the truck leaves; our e-way bill guide shows the steps.
Income tax for pipe and moulding units
TCS when you sell scrap and rejects. Runners, sprues, off-spec pipe and rejected mouldings are "scrap" if they can't be used as such (Section 402(31) of the 2025 Act defines scrap as waste from manufacture "definitely not usable as such"). If your unit is a company, firm or co-operative, or an individual or HUF whose business turnover exceeded Rs 1 crore in the previous year, you collect TCS when you sell it. For FY 2025-26 the rate was 1% under Section 206C(1) of the 1961 Act. From 1 April 2026 it's 2% under Section 394(1), Table Sl. No. 4 of the 2025 Act, as amended by the Finance Act 2026. You don't collect TCS if a resident buyer gives you a declaration in Form No. 127 that the scrap is for manufacturing, not trading (Section 394(2); Rule 212, Income-tax Rules 2026). A recycler buying your regrind usually qualifies; a scrap trader doesn't. Our TCS guide explains deposit and returns, and our TDS filing service files the quarterly TCS return.
Extra depreciation on new machines. Section 33(8) and (9) of the 2025 Act give a manufacturer additional depreciation on new plant or machinery, on top of normal depreciation (Section 32(1)(iia) of the 1961 Act for FY 2025-26). Example: you install a new injection moulding machine costing Rs 35,00,000 in tax year 2026-27. If it's put to use for 180 days or more that year, the additional deduction is 20%, so Rs 7,00,000. If it's put to use for less than 180 days, you get Rs 3,50,000 this year and Rs 3,50,000 next year. Second-hand machines don't qualify. A proprietor in the new tax regime loses this deduction (Section 202(2)(a)(vi)); a partnership firm keeps it, because firms aren't in Section 202.
Cash payments. Under Section 36(4) of the 2025 Act, an expense paid to one person in cash above Rs 10,000 in a day isn't deductible. That bites when you pay kabadiwalas in cash. Pay by bank transfer or UPI; it also gives you the payment record the self-invoice needs.
Section 44AD. For FY 2025-26, a resident individual, HUF or partnership firm (not an LLP) can declare 6% of turnover received through banking or online modes and 8% of the rest under Section 44AD of the 1961 Act. The limit is Rs 2 crore, or Rs 3 crore if cash receipts don't exceed 5% of turnover. From 1 April 2026 it's Section 58(2), Table Sl. No. 1 of the 2025 Act. A small moulding unit with Rs 1,50,00,000 turnover, all received by bank, declares at least Rs 9,00,000. Our Section 44AD guide explains the five-year lock-out if you opt out.
Tax audit and MSE payments. Accounts must be audited if turnover exceeds Rs 1 crore, or Rs 10 crore where cash receipts and cash payments each stay within 5% (Section 44AB of the 1961 Act; Section 63(1) of the 2025 Act). If your resin or packaging supplier is a micro or small enterprise, a bill paid late under Section 15 of the MSMED Act, 2006 isn't deductible until the year you pay it (Section 43B(h) of the 1961 Act; Section 37(2)(g) of the 2025 Act). See our Section 43B(h) guide.
Comparison
Buying Scrap vs Selling Scrap: Who Does What
| Parameter | You buy plastic scrap | You sell your rejects and regrind |
|---|---|---|
| GST rate (3915) | 18% | 18% |
| Seller unregistered | From 1 Nov 2026 you pay 18% under reverse charge and self-invoice | Not applicable: you're registered and charge 18% on your invoice |
| Credit | Yes, if used in business (not under composition) | Your buyer takes it |
| Income tax | Seller may collect 2% TCS unless you give Form No. 127 | You collect 2% TCS (Section 394) unless buyer gives Form No. 127 |
| Cash limit | Cash above Rs 10,000 a day to one seller isn't deductible | Bank receipts help with the 44AD 6% rate |
Source: Notifications 9/2025-CT(R), 04/2026-CT(R); CGST Act Sections 10, 31; Income-tax Act 2025 Sections 36(4), 58, 394; Income-tax Rules 2026 Rule 212
Common mistakes pipe and moulding units make
- Ignoring reverse charge on kabadiwala purchases after 1 November 2026. No GSTIN on the seller's slip now means you pay 18% yourself and issue a self-invoice within 30 days.
- Paying the reverse charge from the credit ledger. It must go through the cash ledger; only then can you claim it back as credit.
- Billing drip laterals at 5% without checking the classification. The 5% entry is under heading 8424; plastic tubes under 3917 are 18%.
- Opting for composition and then selling to another State. Section 10(2)(c) bars any inter-State supply under composition.
- Forgetting TCS on scrap sales. The rate doubled to 2% from 1 April 2026. Collect it, or keep the buyer's Form No. 127 on file.
- Paying scrap sellers in cash. Payments above Rs 10,000 a day to one person lose the deduction.
How Tax Garden helps pipe and moulding units
We register your unit, map every product to the right HSN code, set up self-invoices and payment vouchers for scrap bought from unregistered sellers, and file GSTR-1 and GSTR-3B through our GST return filing service. On the income tax side, we collect and file TCS on scrap sales, claim extra depreciation on new machines and file your return through our ITR filing service, with books kept by our accounting and bookkeeping service. Call or WhatsApp us on 9640290977.
Related reading: Paper and plastic bag makers guide | Scrap dealers and recyclers guide | Aluminium and UPVC window fabricators guide | Tiles and sanitaryware shops guide | Borewell drilling contractors guide
