Documents for Plastic Scrap Trade in India: What Travels With a Load

A truck of plastic scrap or recycled granules carries more than material. It carries a set of documents that record what was sold, who sold it, how much it weighed and where it is going. When these are complete and consistent, payment and acceptance usually go smoothly. When they are missing or do not match, the load can be held up and disputes become harder to settle.

This guide explains the documents commonly used in the plastic scrap and recycled plastic trade in India, for both suppliers and buyers. It is a practical overview, not tax or legal advice. Rules and thresholds change, so confirm the specifics for your business with a tax adviser.

Tax invoice

The tax invoice is the main commercial document. It should show the seller and buyer details including GSTIN, a description of the goods, quantity, rate, taxable value, applicable tax and the correct HSN code. Describe the material clearly, for example the polymer and the form such as scrap, regrind, flakes or granules, because the HSN classification depends on what the material actually is. See the knowledge page on the HSN code for background.

For buyers, check that the invoice matches the purchase order: the polymer, form, grade, quantity and rate. A mismatch is easier to correct before payment than after.

E-way bill

Movement of goods by road often requires an e-way bill, depending on factors such as the value of the consignment and the type of movement. It links the invoice to the vehicle carrying the goods. Whether one is needed, who generates it and what details it must contain are set by current rules, so check with your adviser rather than relying on old practice. Make sure the vehicle number on the e-way bill matches the truck actually used.

Delivery challan

A delivery challan is used when goods move without an immediate sale, for example when sending material for job work, sending samples or moving stock between your own locations. It records what was sent and why. Your adviser can tell you when a challan is appropriate instead of, or in addition to, an invoice.

Weighment slip

The weighment slip from a weighbridge records the gross weight of the loaded truck, the tare weight of the empty truck and the net weight of material. In scrap trade, weight is often the biggest source of disagreement. Good practice is to:

• agree in advance which weighbridge will be used for billing;
• keep the original slip and send a photo to the other party;
• note the vehicle number, date and time on the slip;
• allow for packing weight if bags or bales are included.

See baling, packing and transport for dispatch practice.

Lorry receipt

When a transporter carries the goods, the lorry receipt (LR, also called a consignment note or bilty) is the transporter's acknowledgement that they have received the goods for delivery. It names the consignor, consignee, vehicle, number of packages and destination. Buyers should check the package count on the LR against what they unload.

Test reports and quality documents

Test reports are not always required, but they reduce disputes. A report for the lot may include MFI, density, moisture content and ash content, with the lot number. Suppliers of granules often add a data sheet; see how to write a recycled granules data sheet. Buyers can ask for the report before dispatch and compare it with their own test on arrival.

EPR and other records

Some buyers, especially brand owners and their packaging suppliers, may ask for records related to EPR or recycled content. What is needed depends on who is asking and current rules. If a buyer requests such records, agree in writing what you will provide before dispatch. For background, see EPR for plastic packaging in India.

A simple checklist

Document	Who usually prepares it	Key check
Tax invoice	Supplier	Correct HSN code, description and quantity
E-way bill (where applicable)	Supplier or transporter	Vehicle number matches
Weighment slip	Weighbridge	Agreed weighbridge, net weight
Lorry receipt	Transporter	Package count and consignee
Test report	Supplier or lab	Lot number matches the bags

Trading through PlasticSetu

The PlasticSetu sourcing desk tracks dispatch and delivery and will ask for copies of the main documents for each order. Suppliers can list your materials, and buyers can get quotes for the material they need.