Master in Accounts & high court Advocate
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Posted on 11 November 2024
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.