Sale of scrap

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2018 We are coal loading and transportation company working at S.E.C.L. We want to sale some spare parts scrap. How we can show this in our books? Is there any licence required to sale these scraps?

Girish Aradhya

Girish Aradhya (Expert)
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31 August 2018 No license required.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2018 Thank you for your reply. Can we generate GST invoice for the customer of scrap?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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23 July 2025 Here's the straightforward answer to your queries about the **sale of scrap**:

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### 1. **How to show sale of scrap in books?**

* Record the **sale of scrap** as **other income** or **sale of scrap** under a separate income head in your accounting books.
* Maintain proper records of quantity, value, and buyer details for audit and tax purposes.

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### 2. **Is any license required to sell scrap?**

* **No license is required** specifically for selling scrap.
* However, ensure compliance with any local environmental or municipal regulations if applicable.

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### 3. **Can you generate GST invoice for scrap sale?**

* **Yes, you can issue a GST invoice** for the sale of scrap.
* Scrap is considered **goods**, and its sale attracts GST.
* GST rate on scrap usually varies; for most metal scrap, the rate is **18%** (but confirm latest rates as per your scrap type).
* Make sure to charge GST correctly and include it on the invoice.

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If you want, I can help you draft a sample GST invoice for scrap sale or guide you on accounting entries for the transaction. Would you like that?

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