Schedule II explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraphs 9 to 18 are the enforcement half of the EPR guidelines in Schedule II. They say who levies environmental compensation for non-fulfilment, what share comes back on later compliance, what each entity must file and by when, how certificates are verified, how the portal works and who sits on the EPR committee.
These Rules are current as amended up to the Plastic Waste Management (Amendment) Rules, 2026 (G.S.R. 237(E), 31 March 2026). Later amendments, CPCB guidelines and notifications should be checked. If you have received an EPR compensation notice or an audit communication, our legal dispute resolution team can help you respond.
Environmental compensation for non-fulfilment of EPR is levied on the polluter pays principle by the CPCB (entities operating in more than two States) or the State Board (others), under CPCB guidelines (paras 9.1 to 9.4). Paying it does not absolve the obligation, which carries forward three years; later compliance returns 75, 60 or 40 per cent, and nothing after three years (para 9.5). Annual returns are due by 30 June (producers, importers, brand owners) and 30 April (processors).
Paragraph 9: environmental compensation
| Para | Content |
|---|---|
| 9.1 | Compensation is levied on the polluter pays principle for non-fulfilment of EPR targets by producers, importers and brand owners |
| 9.2 | The CPCB lays down and notifies guidelines for imposition and collection on producers, importers, brand owners, recyclers and end of life processors, and updates them as required |
| 9.3 | The CPCB levies it on entities operating in more than two States |
| 9.4 | The State Board levies it on entities in its jurisdiction that do not operate in more than two States or Union territories, and on plastic waste processors; if the Board does not act in reasonable time, the CPCB shall issue directions |
| 9.5 | Payment does not absolve the obligations; unfulfilled obligations carry forward to the next year for three years |
| 9.6 | Funds are kept in a separate escrow account and used for collection, recycling and end of life disposal of the uncollected and non-recycled waste on which the compensation was levied |
The refund slabs in paragraph 9.5
If the shortfall is addressed within three years, the compensation levied is returned as follows:
| Shortfall addressed | Return of compensation |
|---|---|
| Within one year of levying | 75% |
| Within two years | 60% |
| Within three years | 40% |
After three years the entire compensation amount is forfeited. These slabs belong to Schedule II and differ from the slabs in the non-ferrous scrap Chapter of the hazardous waste Rules; each must be read in its own text. No rate of compensation is printed; the amount follows CPCB guidelines.
Paragraph 10: producers, importers and brand owners
- Registration and Action Plan (10.1, 10.2). They register on the portal and give an Action Plan with the category-wise EPR target along with the application.
- Records between brand owners and producers (10.3, 10.4). A brand owner records separately what it bought from producers and importers; those quantities are deducted from the producers' and importers' obligations. Producers and importers must keep records of what they supplied to brand owners, failing which they fulfil the complete obligation, and the portal cross-checks the declarations.
- Collection schemes (10.5). They may operate deposit refund, buy back or other models to build a separate waste stream.
- Annual returns (10.6). Annual returns on plastic packaging waste collected and processed, with reuse and recycled content, and the registered recyclers from whom recycled plastic was bought, are filed with the CPCB or State Board by 30 June of the next financial year.
Paragraph 11: plastic waste processors
Processors register with the State Board in accordance with rule 13(3) (11.1) and submit annual returns by 30 April of the next financial year, category-wise (11.2). The quantity processed and attributed to each entity is made available on the portal and the processor's website (11.3). A processor found to have given false information is debarred by the State Board for one year (11.4). Only registered processors give certificates, except for road construction where the producer, importer or brand owner gives a self-declaration (11.5). Certificates must not exceed installed capacity, are category-wise and carry GST data (11.6), and are issued in the name of the registered entity or local authorities (11.7). End of life processors report annually (11.8).
Paragraphs 12 and 13: the CPCB and State Boards
| Para | CPCB | State Board or Committee |
|---|---|---|
| Registration | Producers, importers and brand owners operating in more than two States, and processors (12.1) | Those operating in one or two States, and processors (13.1) |
| Fee | May charge a processing fee and an annual fee (12.2); no figure printed | Shares in the application fee as decided (12.2) |
| Time | Registration within two weeks of a complete application (12.3) | |
| Verification | By itself or a designated agency, or, since 2026, a Registered Environment Auditor, through inspection and periodic audit (12.4) | Same, in its jurisdiction (13.1) |
| Lists | Publish annually by 30 September the list of entities that failed targets (12.5) | Publish an Exception Report on its website and send annual reports to the CPCB (13.2) |
| Other | Stakeholder dialogue, half-yearly compositional survey, review of technologies (12.6 to 12.8); Central Government may allow returns up to nine months late (12.9) | Stakeholder dialogue and half-yearly compositional survey (13.3, 13.4) |
The 2026 amendment inserted "or Registered Environment Auditor" after "through a designated agency" in paragraphs 12.4 and 13.1.
Paragraph 14: collection systems
Producers, importers and brand owners may develop collection and segregation infrastructure: collection points and material recovery facilities, collection with proportionate frequency, offering collection from local bodies and others, and ensuring recycling in a registered facility (14.1). The network should take account of population, expected volume, accessibility and vicinity, and is not to be limited to areas where collection is profitable (14.2). Voluntary collection points hand waste to producers, importers and brand owners or third parties on their behalf (14.4).
Paragraph 15 and 15A: fulfilment
Details of recycling certificates, only from registered recyclers, and of quantities sent for end of life disposal are given by 30 June of the next financial year in the annual return. The portal cross-checks; on a difference the lower figure counts, and certificates are subject to verification by the CPCB or State Board. Paragraphs 15.4 and 15.5 let manufacturers of biodegradable plastics fulfil EPR through certificates generated by local authorities. Paragraph 15A on cross-category purchase ceases at the end of 2025-2026.
Paragraphs 16 to 18: portal, monitoring and committee
The CPCB's centralised portal is the single point data repository for EPR on plastic packaging (16.3). State Boards report to the CPCB and the State Level Monitoring Committee, and send an annual report on recyclers and end of life disposal by 31 July (17). Paragraph 18 sets up a committee chaired by the Chairman of the CPCB to recommend measures to the Ministry, monitor implementation, remove difficulties and guide the portal and forms (18.1); members include representatives of line Ministries, the BIS, three State Boards, CIPET, NEERI and three industry associations (18.2).
Example
Rajat Packaging Limited operates in four States and misses part of its 2025-26 obligation. Under paragraphs 9.3 and 9.5 the CPCB may levy compensation, and the shortfall carries forward. When the company fulfils it within two years of the levy, it can claim the 60 per cent return slab. It also checks that its annual return, due by 30 June, lists its recyclers' certificates, because the lower figure counts where portal data differ.
Need help with an EPR notice?
Compensation, refunds and audit findings depend on the match between your returns, certificates and the portal record. Our legal dispute resolution team can help you test the figures and prepare a response or representation.
Key takeaways
- The CPCB or the State Board levies compensation, depending on the States of operation, under CPCB guidelines.
- Payment does not clear the obligation, which carries forward for three years; refunds are 75, 60 and 40 per cent by year, and forfeiture follows after three years.
- Returns fall on 30 June for producers, importers and brand owners and 30 April for processors.
- Where certificate figures differ, the lower figure counts.
- Verification can now involve a Registered Environment Auditor.
Read next
- Paragraphs 7 and 8 of Schedule II: targets, recycled content and certificates
- Rules 16 to 19: committee, reports, compensation and penalty
- Sections 15 to 15B of the EP Act
- Schedule I and Schedule II paragraphs 1 to 6
Disclaimer: Based on the environment rules, guidelines and notifications named above as published in the Gazette of India, read with every amendment notified up to 3 October 2026 that the article names (consolidated reading texts from the CPCB 2021 compilation and the Goa State Pollution Control Board 2025 compilation were checked against the amending notifications), as consulted on 3 October 2026. Later amendments, CPCB guidelines, State Board orders and fees should be checked. This article is general information, not legal advice; check the official text before acting.