Crumb Rubber

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Sanjay (Querist)
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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)
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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)
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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)
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16 September 2025 Thanks sir for your valuable notes.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 September 2025 Good luck....

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