Invoicing For Removal Of Periodical Scrap Items - Mixed

Basheer PM
watch_later 6 months, 1 week ago

We periodically remove all our scrap items which consists of multiple type of items, like damaged products, plastic cans, cardboard scrap, bottles etc. Some can be quantified, while most cannot be. We sell these to local scrap shops. The normal practice is that the scrap buyer will survey and offer an estimate price for the lot and we close the deal for a mutually agreed price for the lot

My Query is as segregating them and quantifying is time consuming and not worth the effort, How can we show the sales in GST without Quantity and HSN Code. Please advice

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1 Answer

GST Payer watch_later 4 months, 1 week ago

This is a case of mixed supply where you cannot quantify items and are selling as a single lot. Applying provisions attached to mixed supply, you can use HSN code of principal item (item with higher quantity) and even GST rate of same item will apply.

In light of no major case law, this seems logical and related to provisions of GST laws.

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