Ginning machinery
This query is : Resolved
Allauddin Patel
(Querist)
12 July 2025
My question is ..
Can old ginning machinery sell as scrap and if we sell ginning machinery as scrap then what goods name and hsn should we mention in our tax invoice ?
Can old ginning machinery sell as scrap and if we sell ginning machinery as scrap then what goods name and hsn should we mention in our tax invoice ?
12 August 2025
Yes, you can sell old ginning machinery as scrap.
GST Invoice - Sale of Old Machinery as Scrap
Goods Description:
You can mention something like "Scrap of Ginning Machinery" or simply "Scrap Machinery."
HSN Code for Scrap:
Generally, HSN 7404 is used for "Copper waste and scrap," but since it's ginning machinery scrap (which is mainly metal), the applicable HSN is likely:
HSN 7204 – Ferrous waste and scrap (if it's mostly iron/steel)
Or HSN 8501 – if it's electrical machinery scrap (less likely here).
Check the composition of the scrap material. If it is primarily iron/steel, use HSN 7204.
GST Rate:
Scrap sales usually attract GST @ 5% (non-IGST), but verify the latest GST rates for scrap goods under your state GST laws.
GST Invoice - Sale of Old Machinery as Scrap
Goods Description:
You can mention something like "Scrap of Ginning Machinery" or simply "Scrap Machinery."
HSN Code for Scrap:
Generally, HSN 7404 is used for "Copper waste and scrap," but since it's ginning machinery scrap (which is mainly metal), the applicable HSN is likely:
HSN 7204 – Ferrous waste and scrap (if it's mostly iron/steel)
Or HSN 8501 – if it's electrical machinery scrap (less likely here).
Check the composition of the scrap material. If it is primarily iron/steel, use HSN 7204.
GST Rate:
Scrap sales usually attract GST @ 5% (non-IGST), but verify the latest GST rates for scrap goods under your state GST laws.
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