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1Captive consumption of Finished Goods :

As you are aware core business of our company is mining of kota stone.  The same stone is used by company in its building repair / construction.

Company is maintaining a separate account “repairing to building A/c“same is debited to this account. Company also raise invoice without tax in the name of Repair to Building account –ASI (K) Ltd.

While processing GSTR-1, a rejection for own GSTIN is populated i.e.  System not accepting Company GSTIN for above mentioned sales bill.

 

Please guide should we show this sales in GSTR -1 as sales to unregistered party or need not to include in Turnover.

 

2.       How to treat enclosed invoice in the books as we send a transformer for repairing work wherein service provider taken back the used transfer oil ,copper as scrap and adjusted amount in the same invoice. While GST is charged on full value of Rs. 75900/- .

Please guide on the treatment of Scrap/oil amount of Rs.37600/- . Should we raise the invoice for 37600/- or else.

Please provide the opinion on the above matter.

 

Reply

Dear Sir,

1.) In case of captive consumption there is no need to issue invoice where consumption of goods is within the same unit or in the unit situated in the same state. Therefore you don’t need to raise invoice for the captive consumption of goods and no need to include the same in the turnover as well.

 

2.) For recording of transaction in your books of accounts, you should raise an invoice stating the amount of scrap as sale of scrap. no matter the service provider has issued invoice containing amount of scrap. And record the invoice issued by service provider on gross basis.    
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