As we close the books for the 2025-26 fiscal year, one of the most significant changes for the metal industry is the 2% Tax Deducted at Source (TDS) under GST. Effective since late 2024 and now a standard pillar of the 2026 tax landscape, this rule applies to all B2B transactions where the contract value exceeds ₹2.5 Lakhs. If you are selling Copper Armature (currently ~₹1,185/kg) or Aluminum Ingots (~₹336/kg) this March, understanding this deduction is vital for your year-end cash flow management.

The rule is simple but strict: the buyer must deduct 2% (1% CGST + 1% SGST for intra-state, or 2% IGST for inter-state) of the taxable value and deposit it with the government. For a seller, this isn't a "loss" the amount is credited to your Electronic Cash Ledger on the GST portal. However, it requires you to deal with registered, compliant buyers who will actually file their GSTR-7 on time. Listing your materials on BidMyScrap ensures you are only transacting with verified businesses that have the required GST registration to handle these deductions correctly.

Why is this particularly important in March? This month often sees high-volume liquidations as factories clear out their yards. If you sell ₹10 Lakhs worth of MS Melting Scrap (currently ~₹38,800/tonne in Ludhiana), your buyer will withhold ₹20,000 as TDS. If your buyer is an unorganized dealer who fails to deposit this, you lose that credit. BidMyScrap’s transparent auction platform provides a digital trail of every bid and sale, making it easier for your accounting team to reconcile these credits before the March 31st deadline.

Furthermore, the 2026 regulations have tightened the definition of "registered persons" in the scrap trade. By using an e-Scrap auction, you avoid the risk of "Non-Filer" buyers. Our platform allows you to set clear terms regarding the 2% TDS in your auction description, ensuring there are no surprises when the payment arrives. In a market where Nickel Cathode is trading at ~₹1,637/kg, even small percentage errors can lead to large financial discrepancies.

In conclusion, the 2% TDS rule is designed to bring transparency to the Indian scrap market. While it adds a layer of compliance, it also rewards businesses that use organized platforms. This March, don't leave your tax credits to chance. Host your scrap auction on BidMyScrap, connect with tax-compliant buyers, and ensure every rupee of your metal’s value is accounted for in your year-end balance sheet. Experience professional financial transparency with BidMyScrap today.