Cullet GST Rates and HSN Code 7001: A Quick Guide You’ve probably seen it already. One site says 18% GST on cullet. Another says 5%. Your invoice sits in limbo, and the doubt lingers. Use the wrong rate, and it sticks. You’re in theright place. This guide clears the noise and pins down the actual GST rate for cullet under HSN Code 7001 , why the confusion exists, and how to apply the rate correctly in real transactions. Short. Direct. Settled.
Here’s what we’ll cover:
What does cullet mean under GST HSN Code 7001 and key sub-codesThe correct GST rate and tax breakup Why do some sources still show 18% How to apply GST without second-guessing What is cullet under GST? Cullet is simply broken glass and glass waste left behind after manufacturing or everyday use. Think shattered bottles, rejected production batches, or leftover glass pieces that didn’t make the final cut. Businesses sell it as raw material, not finished goods.
The term “glass in the mass ” sounds technical, yet it’s simple. It means glass that hasn’t taken a final shape. No bottles. No sheets. Just molten or solid glass chunks meant for reuse.
Industries rely on cullet every day:
Glass recyclers process waste into reusable input Glass manufacturers are lowering furnace costs Packaging units producing bottles and containers Cullet exists to be reused. GST treated it that way, too.
HSN Code 7001 explained HSN Code 7001 sits under Chapter 70, which covers glass and glassware. Cullet lands here for a clear reason. It’s glass. Just not a finished form. GST classifies it by material, not by how polished it looks.
Legally, HSN 7001 covers cullet, glass waste, glass scrap, and glass in the mass. That includes broken glass meant for recycling and rescue in manufacturing. It does not cover shaped products like bottles, sheets, or tableware. Those move into different headings.
You’ll notice one exclusion. CRT glass and activated glass stay out of 7001. These materials carry contamination or treatment concerns and follow separate tax treatment. Regular recyclable glass doesn’t share that problem.
GST rate for HSN Code 7001 (Cullet) Let’s settle it upfront.
Cullet under HSN code 7001 attracts a 5% GST rate. No hedging. No fine print gymnastics. You apply it as CGST 2.5% + SGST 2.5% for intra-state sales, or IGST 5% for inter-state movement. That rate applies to recyclable glass waste, scrap, and glass in the mass. So why dosome portals still flash 18%?
Here’s where things go sideways:
Incorrect mapping to finished glass goods Non-recyclable glass products are mixed into the same label Outdated rate slabs are still floating online Broad “glass articles” confusion that ignores material intent Cullet isn’t a finished product. GST treats it as a recyclable input. Miss that debit, and the rate gets misread.
Current applicable GST rate on cullet Here’s the rate that applies in real-world transactions. Clean. Direct. No guesswork.
Tax type Rate CGST 2.50% SGST/UTGST 2.50% IGST 5%
This structure applies when cullet falls under HSN Code 7001, covering recyclable glass waste, scrap, and glass in the mass. You’ll see older or generic sources quote 18%, yet that rate ties back to finished or treated glass items, not recyclable input.
The lower rate exists for a reason. GST places recyclable materials in reduced slabs to support reuse and lower production costs. Still, rates can shift. Before locking invoices or contracts, cross-check the latest CBIC notifications to stay aligned.
HSN Sub codes under 7001 and their GST rates HSN Code 7001 breaks into a few sub-codes. You don’t need the full Chapter 70 maze to get this right. Focus on the entries that actually apply to cullet and glass waste.
HSN Code Description GST rate 7001 Cullet & glass waste (general) 5% 700100 Glass waste & scrap 5% 70010010 Cullet & glass scrap 5% 70010020 Enamel glass in the mass 5% 70010090 Other glass waste 5%
You may spot odd decimal figures on some sites, like 0.025 or 0.05. That’s a formatting issue, not a special slab. GST rates don’t work in fractions like that. Each valid sub-code under 7001 stays at 5%, applied cleanly through CGST/SGST or IGST.
Why is cullet taxed at 5% GST? Cullet sits in a lower GST slab for a clear reason. It functions as raw input, not a finished product. Manufacturers reuse it directly in furnaces, cutting energy use and material costs.
GST policy reflects that role. Recyclable inputs often land in reduced tax brackets to support reuse and cost efficiency. Cullet fits that cleanly. It replaces virgin raw materials and keeps production cycles moving.
There’s an environmental angle here, too. Reusing glass waste:
Reduces landfill pressure Lowers fuel consumption in glass melting Cuts emissions across manufacturing chains GST aligns cullet with other waste and scrap categories that support recycling-driven supply chains. The tax rate follows material purpose, not appearance. Glass meant for reuse stays at 5%.
GST treatment for Intra-state vs Inter-state sale of cullet GST on cullet depends on where the sale happens, not who buys it.
Intra-state sale CGST: 2.5%SGST / UTGST: 2.5%Total GST: 5%Inter-state sale Think of it through an invoice lens. If you sell cullet within the same state, the tax is split between the centre and the state. If the buyer sits in another state, the full 5% applies as IGST in one line. No special conditions. No extra layers. Just match the tax type to the movement of goods, and the rate stays consistent.
Common mistakes businesses make while applying GST on cullet Most GST issues around cullet don’t come from fraud. They come from misclassification and stale assumptions.
Here’s where things usually slip:
Teams map cullet to finished glass items and apply the higher slab. That error sticks out fast during audits.
Picking the wrong sub-code Choosing a broad glass heading instead of 7001 or 70010010 shifts thetax rate instantly.
Treating cullet as a finished product Bottles, sheets, and tableware don’t qualify. Cullet stays raw input. Confusing the two changes everything.
Old slabs still circulate online. Relying on cached tables leads to wrong invoices and messy corrections later. One clean check before billing saves hours of rework after.
How to verify the latest GST rate for HSN 7001 GST rates don’t change often, yet confusion sticks around. The safest way to confirm the current rate for HSN 7001 is to start with official sources. Check CBIC notifications and GST rate schedules issued by the government. These documents settle the rate question without interpretation or shortcuts. They reflect what applies on the ground, not what circulated years ago.
Aggregator sites can lag or clash with each other. Many pull data automatically, miss context, or fail to update older slabs. That’s how 18% keeps resurfacing for cullet. Use aggregates for reference. Use CBIC records for final calls. One quick verification beats fixing invoices later.
Conclusion At this point, you should have a clear idea of how cullet is taxed, which HSN code applies, and why the 5% GST rate is used. That alone can save you from billing mistakes and follow-up fixes later.
One simple rule to remember: If it’s recyclable glass waste under HSN Code 7001, GST applies at 5%. Problems start only when cullet gets treated like a finished glass product.
Sub-codes like 70010010 keep taxation simple and consistent across transactions Most 18% claims trace back to misclassification or outdated data A quick CBIC check beats invoice rework later Swipe helps you turn this clarity into action. It keeps GST classification, rate checks, and compliance aligned, so cullet transactions move fast without second-guessing.
FAQs 1. What is the GST rate on cullet in India? Cullet is taxed at 5% GST under HSN Code 7001. For sales within the same state, it’s split as 2.5% CGST and 2.5% SGST. When the sale crosses state borders, 5% IGST applies.
2. Is cullet taxable at 5% or 18%? The correct rate is 5% when cullet qualifies as recyclable glass waste. The 18% figure shows up from misclassification or outdated tables tied to finished glass items.
3. What is HSN code 7001 used for? HSN Code 7001 classifies cullet, glass waste, scrap, and glass in the mass. It covers raw, reusable glass material, not shaped or finished products.
4. Does glass scrap attract GST? Yes, glass scrap falls under 7001 and attracts 5% GST when sold as a recyclable input for manufacturing or recycling.
5. Is cullet considered recyclable under GST? Yes. GST treats cullet as a recyclable raw material, which explains the lower tax rate aligned with waste and scrap categories.
6. Which sub-code should I use forglass waste? Use 70010010 for cullet and glass scrap in most cases. Other related options under 7001 still apply the same 5% rate when the material stays recyclable.
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