Gstr rate allicable

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This discussion addresses a user's query about GST on packing materials used for oil. The user purchases materials at 18% and 12% GST, uses them for oil packing, and sells the oil at 5% GST, resulting in nil GST payable. An expert clarifies that only the 5% GST rate for oil is applicable in this composite supply scenario. The user's treatment is considered correct, provided Rule 86B doesn't apply, and they can use Input Tax Credit (ITC) fully.

jaigurudev

jaigurudev (Querist)

31 January 2022 dear sir, i purchase packing material @18 gst and 12% gst and use for oil packing and sold @5% gst and hence gst payable is nil.gst officer want that i should pay gst.please advice me where is i am wrong?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 February 2022 In such a case GST of 5% only applicable, the GST rate for oil. You are not wrong it's composite supply single rate only applicable.

CA Altamush Zafar

CA Altamush Zafar (Expert)

02 February 2022 See if Rule 86B applicable on you otherwise your treatment is correct

Lekhraj sood

Lekhraj sood (Expert)

02 February 2022 The action of the GST officer is not in line with law.You can use ITC 100%,subject to rule 86B, for discharging your output GST liability.

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