GST ON SCRAP BETTRIES

[Guest]

Dear sir,

if a maintenance company purchase some new battries and also supplies some scrap bettries to the same vendor, whether gst is leviable to the scrap battries supplied by the company to the vendor, company is registered under gst.

[Rajagopalan Ranganathan]

Sir,

Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators; electrical parts of machinery or apparatus, not specified or included elsewhere in this Chapter will fall under heading No. 8548 attracting CGST @9% and SCGST @9% vide sl. No. 398 of Notification No. 1/2017-Central Tax (Rate) dated 28.6.2017 as amended.

[Ganeshan Kalyani]

GST is applicable on supply of goods or services. Scrap being goods GST is applicable. If you are supplying within the State then CGST and SGST has to be charged. If it is inter state supply then IGST need to be charged. The input tax credit of the tax paid while purchasing new batteries can be utilised against the GST payable.

[YAGAY andSUN]

In addition to above replies,Batteries must be disposed off according to Batteries (Management & Handling) Rules, 2001 read with E waste management Notification No. G.S.R 338(E)/ 23rd March , 2016 .

AI Summary

GST on scrap batteries: treated as taxable goods; intra state attracts CGST and SGST, inter state IGST. Scrap batteries supplied by a registered entity are taxable as a supply of goods under GST, classified with other battery and electrical accumulator scrap; intra state supplies attract central and state GST while inter state supplies attract integrated GST. Input tax credit on taxes paid for new batteries may be utilised against GST on the scrap supply. Battery disposal and handling are additionally governed by battery management and e waste regulations imposing separate compliance duties.