Trading or manufacturing

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This query is : Resolved

Sachin Sharma (Querist)

07 November 2019 Dear Sir, kindly help clarify on below point.

I am registered as a trader under GST.

I can buy an electric scooter from manufacturer without battery under HSN 8711 6020
and with battery under HSN 8711 9091

if i buy with battery and sell to customer with battery, the process is simply trading and OK

BUT
if i purchase scooter without battery from supplier. (GST 5%)
buy battery from a different supplier (GST 28%)

Can I SELL to end customer scooter with battery (together) (GST 5%)

will it come as trading or manufacturing or something else.......
more so coz GST rate difference is there in input and output for me as battery input GST i will claim at 28% but output sale of composite (scooter+battery) will be at 5%...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 November 2019 Buy battery from a different supplier (GST 28%) you Can SELL to end customer scooter with battery (together) (GST 5%)
Claim refund for excess input tax on battery.

Sachin Sharma

Sachin Sharma (Querist)

07 November 2019 Thanks.....another query - will this be still considered as trading activity or something else?

2. Can I adjust the excess input credit from this activity against my textile business under same GST no and same name

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 November 2019 1 It's trading activities.
2 yes you can.

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