Changes of HSN attracts Section 17 of GST, Goods and Services Tax - GST

[Raman Singla]

We purchase Battery (HSN - 8507 GST Rate 28%) without any claim from seller. In the course of reselling under our brand, few of them say 35% of total product is not as per standard or not working as per requirement.

The standardised product sold at high margin with guarantee/warranty in the market.

And to recover the maximum value from unstandardized /not working product we dismantle the product through job work results into Lead and Plastic Shell, where lead consist 65% and remaining plastic shell consist 5% of the total product . Both Lead (HSN 7801 GST rate 18%) and waste plastic shell (HSN 3915 GST rate 18%) sold in open market, which derives almost to recover 70% value of the product. OR some time due to busy schedule or to recover fast cash the unstandardized/not working product sold as it is to recover 65% of value in the open market by naming Waste battery (HSN 8548 GST rate 18%).

Now my query is : Is there any part which attracts section 17 of GST ?

Will TCS on sale of Waste Plastic applicable ?

Posts / Replies

[Ganeshan Kalyani]

In my view no item mentioned in your query falls under sec 17(5).

[Shilpi Jain]

I think your query is not very clear. Are you asking regarding reversal of credit (s. 17(2)) or ineligible credit (s. 17(5))?

[Shilpi Jain]

Also if you are asking about TCS under GST, TCS is applicable under GST only when sale is made through e-commerce operator and where such e-com operator collects the consideration.

[Raman Singla]

Reversal of credit

AND

TCS is Under I TAX

[Shilpi Jain]

As far as your outward supply is taxable, eventhough at a lesser value or rate, reversal of credit not required.