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Sale of scrap - gst applicability

Pranay Sagar Chityala (Analyst) (1 Points)

05 January 2018

Hi,

Can any one give me a clear proviosn on GST regarding, Sale of Scrap pertaining to the Industry which is in Service sector. When it sells Scrap like Waste Papers, Computer scrap etc, is GST applicable on such sale ? Can anyone clarify regarding this.

Thank you !

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14 Replies

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 05 January 2018

Yes service industries also liable for scrap sale as they are also eligible for input tax credit on all purchases on which they pay GST subject to sec 17(5). You may examine the items classify and charge as per rate. If not determinable charge GST @ 18%

1 Like

Manas Das (1431 Points)
Replied 05 January 2018

yes you have to pay gst on sales different tax rates prescribed like plastic scrap 5% iron scrap 18%

CA S K MISHRA (Service) (4280 Points)
Replied 08 May 2018

Paper Scrap(HSN 4707) GST 5%, Computer Scrap (HSN 85 ) GST 5%.

For more information refer www.skmadvisory.com

prosun biswas (accountant) (42 Points)
Replied 14 June 2018

TCS APPLICABLE ON SCRAP SALES

Rayudu Pasupuleti (2 Points)
Replied 28 August 2018

Hello Sir,

I work for a film city. Here this company puts various sets for film making (say big boss set). Once the set is over they will remove this set. However in some cases the company will retain this set to attract visitors. Once the fame is over, these retained sets are removed/ demolished. So, are these sets are to be treated as immovable property for the purpose of GST credit?

Please clarify for both the above cases. Can I take GST credit of materials used for this set? Maily we use steel, cement etc.

Please clarify.