Melting scrap

Induction furnaces and electric arc furnaces across India melt scrap to make billets and ingots. Scrap yards, factories, dismantlers and traders sell it; mills buy it every day. The portal lets both sides trade with verified counterparties and an auction instead of phone calls.

Grades traded

Grade	Description
HMS 1	Heavy melting scrap, thicker clean pieces
HMS 2	Lighter, thinner heavy scrap
HMS 1&2 mix	Sold to an agreed ratio such as 80:20
Shredded	Shredder output - dense and clean
Turnings / borings	Machining chips
CRC bundles	New sheet-metal production scrap, baled
Re-rollable / heavy	Rails, plates and sections, cut to size
Cast iron scrap	Engine blocks, castings - a separate furnace grade

For sellers: run a forward auction

List the lot with grade, approximate tonnage, location, photos and the closing time. Verified buyers bid upwards; the highest bid (H1) wins. The deal note records the weighbridge, deductions, lifting time and payment - so the terms are settled before the truck arrives.

For buyers: float a reverse auction

Need a steady supply at your furnace? Float the grade, monthly tonnage, delivery point, deduction rules and payment terms, and let verified suppliers bid down.

Write these into every scrap deal

Grade and size limits; maximum dust, rust and moisture.
Banned items: sealed containers, non-ferrous, rubber, explosive or radioactive material.
Weighbridge to be used, and who pays for it.
Deduction method agreed before loading.
GST treatment, e-way bill and payment terms.

GST rules for scrap

Scrap (HSN 7204) attracts 18% GST. From 10 October 2024 a registered buyer pays GST under reverse charge on scrap bought from an unregistered seller, and between registered parties the buyer deducts 2% GST TDS on contracts above Rs 2.5 lakh. Confirm current rules with your tax adviser.

Frequently asked questions

Can I sell scrap online on Indian Steel Portal?

Yes. Register and complete KYC, then list your lot for a forward auction. Verified buyers bid and the highest bid wins.

Who can buy scrap on the portal?

Any KYC-verified member - furnaces, mills, foundries and traders. GSTIN, PAN and bank proof are checked before trading is unlocked.

What deductions are made on scrap?

Typically for dust, rust, moisture, non-ferrous and other contamination. Agree the method in writing before loading, and record it in the deal note.

Is GST payable under reverse charge on scrap?

Yes, when a registered buyer purchases metal scrap from an unregistered seller (from 10 October 2024).

What is the HSN code for iron scrap?

HSN 7204 - ferrous waste and scrap - at 18% GST.

Last updated 8 October 2026.