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Gst on brass & copper scrap

Others 760 views 1 replies

I am a small utensils trader based out of rajasthan, customers who come to buy new utensils they exchange the old utensils (we can call it scrap) with the new one, also some customers come to sell copper and brass spares which are of no use.

 

Now how do I account this scrap and bring the stock of this in my books, so that when I sell this scrap to the factory I can invoice him accordingly.. I am very confused of the whole process.. if somebody can answer it will be really helpful.

Replies (1)
dear Naveen, if the scrap is received from URD, u need to pay reverse tax 18% on it, and when u sell it to any party...levy 18% GST.Earlier, it was possible to cover the difference between new utensils and scrap under job work or so..but now, scrap and new utensils will have to invoiced at different GST rates in different invoices (Input / output), and reflect it in ur return accordingly..thank u.


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