An IT company wants to sell its used laptops. However the laptops are no longer in a usable condition and it can only sold as scrap i.e E waste. In this case, should we use HSN 8417 (i.e HSN code for laptops) or HSN 8548 (i.e HSN of E waste). Further, the sale of E waste amounts to sale of used assets and warrants ITC reversal as per section 18 (6)?.
Thanks in advance
IT company seeks HSN code guidance for selling unusable laptops as e-waste, queries ITC reversal under CGST Section 18(6). An IT company seeks guidance on the appropriate Harmonized System of Nomenclature (HSN) code for selling its unusable laptops as e-waste. The question is whether to use HSN 8417 for laptops or HSN 8548 for e-waste. Additionally, there's a query about whether this sale requires Input Tax Credit (ITC) reversal under section 18(6) of the CGST Act. One response advises applying an 18% GST rate under Chapter 85 for e-waste, referencing specific notifications and suggesting consideration of tax on the higher side. Another respondent agrees with this clarification, while a third inquires about the asset's usage duration. (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
TaxTMI 
