Can we sales our Raw Material to other party

[Guest]

Dear Experts,

We are a manufacturer and registered under GST as a manufacturer.

My Query we are purchase raw material from supplier and the same raw material can we sale to third party.

It is allowable in GST or not ?.

Regards

Swapneswar Muduli

[DR.MARIAPPAN GOVINDARAJAN]

It may be allowed but you can't take input tax credit. If you take input tax credit, it should be reversed at the time of sale to third party.

[Himansu Sekhar]

Moreover it is a supply. Gst is applicable.

AI Summary

Sale of raw material is a taxable supply and GST applies; input tax credit must be disallowed or reversed. A manufacturer registered under GST may sell purchased raw material to a third party; this transaction is a supply and GST applies. Input tax credit cannot be retained for such material, and if already availed it must be reversed at the time of sale to the third party.