GST reverse charge extended to used cooking oil, plastic, tyre and e-waste scrap from 1 November 2026

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Published 31 October 2026

Bottom Line Up Front (BLUF)

The Goods and Services Tax (GST) reverse charge mechanism has been extended to four specific goods: used cooking oil, plastic scrap, tyre scrap, and e-waste scrap. From 1 November 2026, registered recipients purchasing these goods from unregistered suppliers will be liable to pay GST under the reverse charge.

Ratio Decidendi · Legal Principle Established

The principle of extending the reverse charge mechanism under GST to specific goods when purchased by registered recipients from unregistered suppliers, to ensure tax collection and compliance in certain sectors.

Practice & Procedural Impact for Advocates

Advocates should advise registered clients dealing in used cooking oil, plastic, tyre, or e-waste scrap to prepare for GST compliance under the reverse charge from 1 November 2026. Litigants in these sectors must ensure their accounting and procurement systems are updated to reflect this change in tax liability.

Key Legal Takeaways

1GST reverse charge applies to used cooking oil, plastic, tyre, and e-waste scrap.
2Effective date for the extension is 1 November 2026.
3Registered recipients buying from unregistered suppliers are liable for GST.

The Legal Issue The legal issue concerns the extension of the Goods and Services Tax (GST) reverse charge mechanism to specific categories of goods. This change mandates that registered recipients, when procuring certain goods from unregistered suppliers, will be responsible for paying the GST, rather than the supplier.

Court's Reasoning This is a legislative or regulatory change, not a court judgment. The reasoning behind such an extension typically involves broadening the tax base, ensuring compliance in sectors where unregistered suppliers are prevalent, and streamlining tax collection for specific goods that may otherwise escape the tax net. The notification aims to bring transactions involving used cooking oil, plastic scrap, tyre scrap, and e-waste scrap under a more structured tax regime.

What Follows From 1 November 2026, registered businesses that purchase used cooking oil, plastic scrap, tyre scrap, or e-waste scrap from unregistered suppliers will be required to pay GST under the reverse charge mechanism. This necessitates a review and update of procurement and accounting procedures for all affected registered recipients to ensure compliance with the new tax liability.