Purchase of Battery from Supplier & Buyback of existing battery

[JOHN SHANNEL]

Hello experts,

We are buying battery from supplier at 15k per battery. The supplier also agreed to buy back the existing batter at 5k per battery.

How Invoice to be raised?

a. Should he raise invoice of 15k for new battery and i should raise sale of old battery @ 5k OR

b. Supplier can raise Invoice at 10k per battery?

Please clarify.

[Sadanand Bulbule]

Dear Mr. John

Both are independent transactions. Your understanding at "a" is correct and accordingly tax invoices are to be raised.

[KASTURI SETHI]

First method (a) is correct. 

[Shilpi Jain]

If you are a registered person then 'a' is the right way to do it.

[JOHN SHANNEL]

Thanks everyone for the clarification.

AI Summary

Separate taxable supplies: purchase and buyback treated as independent GST-taxable transactions with invoices issued for each supply. Purchase of a new battery and the supplier's buyback of the existing battery are separate taxable supplies for GST. The supplier must issue a tax invoice for the new battery at the full sale price, while the buyback of the old battery is an independent sale requiring its own invoice and GST accounting on that consideration.