Packing Material A/c treatment

This discussion clarifies the accounting treatment for packing materials used in both taxable and exempt sales. It explains that while calculating the aggregate turnover, both taxable and exempt supplies must be included. Input tax credit (ITC) taken on packing materials for exempt supplies needs to be reversed proportionally. The query also seeks guidance on the specific accounting entry for this reversal, whether it should be booked as an expense, stock, or another category.