Hello all
We need help in terms of understanding a transaction under GST.
Trasaction Brief: Lets say there are 2 GST registered companies - ABC & XYZ
ABC business is to collect waste paper(HSN: 4707 @ 12% GST) from XYZ and return back fresh paper to the XYZ.
Transaction1: ABC Collected 100 kg waste paper from XYZ and sell it to Paper mill.
Transaction 2: ABC buys Fresh paper from paper mill and returns back to XYZ in a particular ratio.
ABC dosn't pay any money to XYZ instead pays back in kind.
PROBLEM:
1. How to record such transaction under GST/barter system.
2. XYZ doesn't raise any tax invocie at the time of selling waste paper neither they want to receive an invoice at the time of receiving the fresh paper.
any help will be really appreciated.
CAclubindia
