Crumb Rubber

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This discussion explains how tyre remoulding businesses can accurately record the production of crumb rubber and rubber flash within Tally ERP. It details using production vouchers and stock journals to manage by-products and semi-finished goods. The guidance also clarifies the Goods and Services Tax (GST) implications, noting that while internal use of crumb rubber doesn't incur GST, selling it or finished products does, with specific HSN codes and rates mentioned.

Sanjay

Sanjay (Querist)

29 August 2025 Sir,

We are manufacturing of Tyre Remoulding products i.e Precured Tread Rubber etc. while producing the Precured Tread Rubber (Finished Goods) 3% to 5% of Crumb Rubber & Rubber Flash generated from finished goods.
we are using crumb rubber generated from above process to further process of semi finished goods i.e Master compound of Precured Tread Rubber .

presently we are showing only finished goods entry in tally erp i.e Precured Tread Rubber.

Please guide us how can i show this above process and whether its effect to GST ?

Thanks & Regards
SANJAY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 September 2025 Practical Steps in Tally ERP
Create distinct stock items for all by-products and semi-finished goods.
Configure a Production Voucher, showing input materials, finished goods, and generated by-products.
Use Voucher Types such as “Stock Journal” for transferring crumb rubber/rubber flash to semi-finished goods and recording consumption.
Maintain BoM and stock journals for inventory tracking and GST compliance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

07 September 2025 GST Implications
Crumb rubber and flash generated during process are considered by-products, and if sold or transferred, they attract GST at 18%; they are classified under HSN code 4004.
Internal consumption (using by-products for further processing inside the same company) does not require separate GST payment, but proper documentation is essential to ensure accurate stock valuation and compliance. If these by-products are ever sold, GST must be charged at 18%.
Finished goods (Precured Tread Rubber) attract GST at 18%, unless specifically exempted for certain types or uses.

Sanjay

Sanjay (Querist)

16 September 2025 Thanks sir for your valuable notes.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 September 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 September 2025 Good luck....

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