Iron Scrap Sales with fixed value

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This query is : Resolved

Bhai (Querist)

09 October 2025 Dear Sirs,

We are planning to dismantle our machineries which are not in use and sell as scrap.

Total value of scrap has been mutually agreed. But we do not know the weight of the total scrap materials.

Material will be moved on daily basis.

Kindly clarify GST implications. How to raise scrap invoices. Since qty weight differs daily is it allowed to show different rate per unit in our invoice, as whole scrap is agreed at a fixed value.

Thanks.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 October 2025 GST law requires the invoice to state quantity and value for each supply.

If the rate per unit (per kg/ton) changes due to daily fluctuations or is averaged to fit a fixed total contract, the invoice can show the agreed unit rate or a variable rate as per the mutual agreement, provided the calculation is clear and complies with contract terms.

It is permissible to show differing rates per unit as long as the calculation matches the mutually agreed total value of the scrap contract, and daily invoices accurately reflect weight and value.

Ensure daily invoices have accurate weight, rate, and applicable GST, and the total matches the mutually agreed contract value over the period.

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