Waste Tyre Management Overhaul: NITI Aayog Proposes GST Cuts and National Standards for Recycled Products

Key facts

• NITI Aayog and the Material Recycling Association of India (MRAI) organised the Paryavaran NITI Manthan conference in New Delhi on 4 May 2026 to reform waste tyre management.
• India recycled approximately 3 Million Metric Tonnes (MMT) of tyres in 2024-2025, including 1.6 MMT from domestic waste and 1.4 MMT from imports.
• The proposal introduces national standards for Tyre Pyrolysis Oil (TPO) and recovered Carbon Black (rCB) to recover an estimated annual revenue loss of ₹7,500 crore.
• NITI Aayog recommended reducing the Goods and Services Tax (GST) on recycled tyre products from 18 per cent to 5 per cent and introducing separate six-digit Harmonised System of Nomenclature (HSN) codes.
• Proposed regulations include mandatory continuous emission monitoring for pyrolysis units and formalising recyclers through the Micro, Small and Medium Enterprises (MSME) Udyam Assist initiative.