GST treatment for plastic pipe manufacturing firm

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one of my client is manufacturer of LDPE pipes..what they do is they recycle the old LDPE pipes make granules and from that granules they manufacture ldpe pipes.

They Purchase used/scrap of LDPE pipes from farmers and small vendors all are unregistered dealers and make new pipe out of it.

the question is what is the GST treatment in this case as they Purchase from unregistered dealers and sell them to same unregistered dealers.
how to file there return in this case.
Replies (4)
GST is applicable under reverse charge mechanism i.e. the purchasers are required to pay GST tax to the Government.

1. In case of Purchase from Unregistered Dealer - No need to pay GST as party is unregistered and section 9(4) read with notification No. 07/2019-Central Tax(Rate) Dated 29th March 2019, applicable to specified class of person. same is not applicable in your case.

2. In case of Sale to unregistered dealer - Since seller is registered so need to charge GST on invoice.

 

Actually sir buyers are not ready to purchase pipes with gst they are saying that they are getting the same product without gst from somewhere else.
in this case what should we do. my client is not selling pipes without gst as he doesn't want to do illegal stuff.
retailer's are not paying back gst they only want pipes in taxable value..
is there any case were we can pay gst also and satisfy our client also..

because various manufacturers are supplying without gst so if we charge gst it will increase the price of the product
As your manufacturers are supplying with out GST..you are losing input ITC component.. which could have been used to offset output ITC..


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