Gst on boxes discarded as scrap

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GST Registered Trader selling empty cardboard boxes as scrap, shall it attract RCM under GST.

Note: Trader is not a scrap dealer, he is trading some consumables, empty carton boxes of consumables are discarded as scrap by selling those boxes to local scrap buyers.

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As per GST regulations, selling empty cardboard boxes as scrap may attract Reverse Charge Mechanism (RCM) under certain conditions.

 Here's a breakdown:

1. *Classification*: Empty cardboard boxes are classified as "waste and scrap" under GST. 

2. *RCM applicability*: If the trader is not a scrap dealer but is selling scrap generated from their business operations, RCM might not apply. 

3. *Threshold exemption*: If the value of scrap sold is below the threshold limit (currently ₹5 lakhs), RCM is not applicable. 

4. *GST rate*: If RCM applies, the GST rate would be 5% (2.5% CGST + 2.5% SGST)..  -

 RCM applicability - Threshold exemption - Compliance requirements Remember, GST regulations can change, so stay updated and consult a tax expert for personalized advice.

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