Sale of Paper Sludge

[Manjunath S]

Dear Sir,

We are paper manufacturers and we wanted to know that the paper sludge waste is taxable or excempt under GST ?

If taxable, what is the rate of Tax ?

Please explain in details.

Thanks in advance.

Regards,

Manjunath S

AI Summary

Taxability of paper sludge hinges on its classification under the recovered waste heading; seek an advance ruling to resolve treatment.
Whether sale of paper sludge attracts GST depends on its classification under the recovered waste heading; if classifiable under that heading it is taxable at the notified concessional rate, but if not classifiable it is non taxable and falls within the concept of exempt supply. Classification uncertainty also affects reversal obligations for input tax credit, and seekers are advised to obtain an advance ruling to determine applicable treatment.