| Oct-27-2021

scrap bag gst liabities

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  • CA VenkataramaniRAM PRATAP GUPTA

    We have purchase raw material rice bran in bag. Empty bag is used for packing of finished good Doc. Scrap Bag is used in Boiler . whether Scrap Bag used in boiler liable for GST . We have not taken ITC on Bag. Department Saying Record should be maintained for scrap bag.
    pls guide me

    CA VenkataramaniCA Venkataramani
    Compliance Expert

    Comment: Let us put the facts in its perspective. The bags in which rice bran are purchased are classified into two parts – one being the empty bag and the second being scrap bag. Further, the empty bag is being used for packing of finished goods and the scrap bag is used in the boiler.

    We understand from your query that the scrap bag is used within the registered premises ‘in a boiler’ and without removing the same from the registered premises for ‘supply or otherwise’. In such a scenario, in my considered view, there shall not arise the question of maintaining separate records, since, the input tax credit of GST paid thereon is not being claimed.

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