GST treatment for plastic pipe manufacturing firm

This discussion addresses the Goods and Services Tax (GST) implications for a company manufacturing LDPE pipes by recycling old ones. The core issue is purchasing scrap from unregistered dealers and selling finished pipes back to unregistered buyers. While the general rule for purchasing from unregistered dealers doesn't apply here, the manufacturer, being registered, must charge GST on sales. This creates a challenge as buyers prefer non-GST purchases, potentially impacting competitiveness. The advice suggests that selling without GST is illegal and that charging GST, while increasing the price, ensures compliance and allows for input tax credit utilisation.