GST entry on sale of scrap

what is the accounting entries for sale of scraps under RCM Method
Replies (2)
Quick Summary
This discussion clarifies the accounting entries for selling scrap under GST. It confirms that the Reverse Charge Mechanism (RCM) is generally not applicable to scrap sales. The standard entry involves debiting Sundry Debtors (or Cash for cash sales) and crediting the Sale (Scrap) account, along with applicable CGST and SGST (or IGST for inter-state sales).

RCM ????? but RCM is not applicable on scraps sales.

Accounting  entry  for Sale  of Scrap  

Sundry  Debtors       A/c           Dr 

 To   Sale  (Scrap )  A/c                           Cr 

 To   CGST              A/c                           Cr 

 To   SGST               A/c                          Cr 

(Booking  of  Scrap sale entry ) 

 If  Cash  sale , Cash  Account  will be  debited . 

Note - 1)  You have to  open ledger  Sale (scrap )  under  Sales 

           2) If interstate sale then IGST will applicable 

           3)  You have to  deduct  TCS  ( check current  %  )  on sale of scrap under section 206A of the Income Tax act 1961  and   therefore you required  valid  TAN  no of the  Income tax  Dept 

           4)  As  Mr  Pankaj  Rawat  said  No RCM  applicable on sale of scrap . please confirm 

          Scrap  means waste  and scrap from manufacturing  or mechanical  working which  is definitely not  usable . 

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