EPR Revenue Scenarios and GST Treatment by End Product
EPR certificate revenue scenario comparison for 1,000 MT of waste tyre input, and the complete GST and HSN code reference for every input and output stream in a tyre recycling operation.
| Section | Item | Value / Rate |
|---|---|---|
| Theoretical maximum (1000 MT input) | Reclaimed Rubber at 1.30 × ₹8.40 per kilogram | Approximately ₹1.09 crore in certificates |
| Regulatory floor (1000 MT input) | Batch TPO at 0.50 × ₹2.52 per kilogram | Approximately ₹12.6 lakh in certificates |
| Feedstock — ELT (End-of-Life Tyres) | HSN 4004 | 5 percent |
| Fuel — Process fuel oil | Petroleum products | Non-GST (excise / VAT regime) |
| Capital goods — Pyrolysis plant | No concessional renewable-energy rate | 18 percent |
| Output — Tyre Pyrolysis Oil | HSN 2710 19 90 | 18 percent |
| Output — Recovered Carbon Black | HSN 2803 | 18 percent |
| Output — Crumb Rubber | HSN 4004 | 5 percent |
| Output — Reclaimed Rubber | HSN 4003 | 18 percent |
| Output — Retreaded Tyres | HSN 4012 — reduced from 28 percent | 18 percent |
Beyond definitions
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How to read this table
- Green rows = EPR revenue scenarios (1,000 MT input basis); blue rows = GST on inputs; purple = GST on capital goods; amber = GST on outputs
- EPR revenue values in the table are illustrative for 1,000 MT — scale proportionally for your actual capacity
- GST rates apply to registered entities under the standard GST regime; unregistered operators cannot claim Input Tax Credit
- HSN codes determine the GST rate — verify the correct sub-heading with a GST consultant for borderline products like TPO blends
About this table
Choosing the right end product for a tyre recycling business involves two parallel financial calculations: how much EPR certificate revenue it generates, and how the Goods and Services Tax (GST) system treats each input and output stream. This table covers both in a single reference.
The EPR revenue scenarios use 1,000 metric tonnes of waste tyre input as the baseline. At the top end, processing into reclaimed rubber at the 1.30 certificate weightage generates approximately ₹1.09 crore in EPR certificates — assuming prevailing credit prices. At the regulatory floor, batch-process Tyre Pyrolysis Oil (TPO) at the 0.50 weightage generates approximately ₹12.6 lakh. The gap between these two scenarios is roughly 8.6 times — which illustrates why end-product selection is as much a financial decision as a technical one. These are indicative certificate values; actual revenue depends on EPR credit market prices at the time of sale.
The GST treatment of each stream is equally important for working capital planning. End-of-Life Tyres (ELT) as feedstock attract only 5% GST under HSN 4004 — the same code as crumb rubber output, which also carries 5%. Tyre Pyrolysis Oil (HSN 2710 19 90), Recovered Carbon Black (HSN 2803), and Reclaimed Rubber (HSN 4003) all attract 18% GST on output. Process fuel oil falls outside the GST system entirely and is subject to excise and VAT. Critically, pyrolysis plant capital goods carry 18% GST with no concessional renewable-energy rate — this is a common misconception that affects capex planning for first-time operators.
The Input Tax Credit (ITC) position matters: a registered entity can set off the 5% GST paid on ELT feedstock against the 18% GST collected on TPO or rCB output, but the process fuel oil GST exclusion creates a mismatch in fuel-cost tax treatment that should be reflected in cost modelling.
Key insights
- The EPR certificate revenue gap between the best end product (reclaimed rubber) and the worst (batch TPO) is roughly 8.6 times for the same 1,000 MT of feedstock
- Crumb rubber and its ELT feedstock both attract only 5% GST — lower than most other tyre recycling outputs
- Tyre Pyrolysis Oil attracts 18% GST (HSN 2710 19 90) and process fuel oil falls entirely outside GST — creating a cost asymmetry in fuel-cost accounting
- Pyrolysis plant capital goods carry 18% GST with no concessional rate — operators who assumed a renewable-energy exemption will face higher effective capex
- Retreaded tyre GST was reduced from 28% to 18% (HSN 4012) — a meaningful cost reduction for retreaders selling into the replacement market
Methodology & sources
EPR revenue scenarios use indicative EPR credit prices prevailing in the industry as of 2024; actual prices vary with market supply and demand. GST rates and HSN codes are as per GST Council notifications current as of FY 2024-25. Verify HSN sub-headings and applicable exemptions with a qualified GST consultant before filing. EPR credit prices are not fixed by regulation — they are market-determined.
Related data tables
EPR Credits — Generation, Transfer, and Surplus
A three-year trend showing EPR credit generation by tyre recyclers, credits transferred to tyre producers, and unsold credits — revealing rapidly growing generation capacity outpacing producer demand and creating a growing credit surplus in 2024-25.
EPR Targets and End-Product Certificate Weightages
The Extended Producer Responsibility (EPR) obligation targets for tyre producers ramp up year by year to full coverage — and the certificate weightage multipliers show which end products generate the most EPR revenue per tonne processed.
Tyre Recycling End Products — Cross-product Comparison
Side-by-side comparison of nine tyre recycling outputs across three product families — crumb rubber grades, CRMB road-bitumen blends, and reclaimed rubber tiers — showing mesh or dose, buyers, capex tier, and discount versus virgin for each.