GST RCM… Purchase or Plastic Waste… Purchase of Plastic Scrap

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GST RCM… Purchase or Plastic Waste… Purchase of Plastic Scrap

GST RCM now applies to purchases of plastic waste and scrap (HSN 3915) from an unregistered supplier by a registered buyer, effective 1 November 2026. The registered recipient must pay GST under reverse charge, even if the unregistered supplier is below the GST registration threshold.[scconline][pib.gov]

When RCM applies

Situation GST treatment
Unregistered person sells plastic waste/scrap (HSN 3915) to registered buyer RCM applies; registered buyer pays GST. [scconline][pib.gov]
Registered supplier sells plastic waste/scrap to registered buyer Normal forward charge; supplier charges GST. Check separate 2% GST TDS requirement. [pib.gov][cfo.economictimes.indiatimes]
Unregistered person sells plastic waste/scrap to unregistered buyer No RCM under this new provision. [corpseed]
Plastic scrap classified outside HSN 3915 This specific RCM entry does not apply; classification must be checked carefully. [taxguru][taxo]

Practical compliance for buyer

  • Verify that the material is genuinely waste and scrap of plastics under HSN 3915, not reusable plastic material, finished goods, or another scrap category.[corpseed][taxo]
  • Obtain and retain supplier declaration/evidence that the supplier is unregistered; if the supplier later crosses the threshold, they must obtain GST registration.[pib.gov]
  • Pay GST under RCM using the normal RCM time-of-supply and payment rules; report it in the relevant GST return and claim ITC only if otherwise eligible.[corpseed][taxo]
  • Issue a self-invoice / payment voucher as applicable for unregistered-supplier RCM supplies and maintain purchase documentation.[corpseed]
  • For purchases from a registered plastic-scrap supplier, deduct TDS at 2% and file GSTR-7; issue the TDS certificate to the supplier.[pib.gov][cfo.economictimes.indiatimes]

Important distinction

This is not a general RCM on all plastic purchases. It applies specifically to plastic waste and scrap under HSN 3915, and only in the unregistered seller to registered buyer scenario.[scconline][taxo]

For a packaging or manufacturing business buying plastic scrap from kabadiwalas/unregistered traders, treat every such purchase from 1 November 2026 as an RCM purchase: classify the item, confirm supplier GST status, pay RCM GST, and preserve records for audit.[pib.gov][corpseed]

How to Fix ERP Inaccuracies and Shop Floor Resistance Without Firing Your Team

Stock does not match ?

PPC not working in ERP ?

Want A Solution ?

 

When ERP stock levels don’t match physical inventory and shop floor modules lie dormant, management’s first instinct is often to blame operational staff. “They aren’t working properly on the software,” or “They aren’t entering job cards on time.”

However, firing operators or threatening punishment rarely fixes bad data. Instead, it leads to staff turnover, hidden workaround sheets, and deeper operational friction. The problem is almost never the staff’s intention—it is the high friction of data entry and the overwhelming nature of a “Big Bang” system launch.

Here is how forward-thinking manufacturing plants solve ERP compliance and stock inaccuracy while keeping their existing team fully motivated.


The Root Cause: Why Good Workers Avoid Bad ERP Entries

Shop floor operators are evaluated on production speed and machine output. When asked to stop work, log into a desktop terminal, search through complex dropdown menus, and type in long material codes, they face a conflict: Hit the production quota or type into the ERP. Naturally, production wins, and software entries get postponed or omitted.

The Operational Rule:

If an ERP entry takes longer than 15 seconds or disrupts machine workflow, operators will find a way to skip it. Fix the friction, and compliance follows automatically.


Pillar 1: The “10-Job Card Rule” for Production Modules

Attempting to force 100% shop floor logging on Day 1 causes immediate operator burnout. Instead of demanding full compliance overnight, adopt a Staggered Live Approach.

Step A: Limit Daily Intake

Require each shift operator to process only 10 Job Cards per day in the ERP. Let the rest of the workload run under traditional workflow temporarily.

Step B: Remove Rigid Approvals

Allow material issuance against job cards with minimal mandatory approval steps during the pilot phase to prevent machine waiting time.

Step C: Scale Progressively

Once operators master 10 cards effortlessly, increase the target to 25, 50, and eventually 100% of daily production volume.


Pillar 2: Restoring Stock Accuracy via Barcoding (Point-and-Shoot)

To fix physical vs. system stock discrepancies, eliminate manual keyboard entries entirely. Transition your stores team from typists to point-and-shoot operators.

  • Label at Receipt: Ensure every raw material reel, pallet, chemical drum, or finished goods box receives a unique QR/Barcode label upon arrival or production output.
  • 3-Foot Scanning Radius: Equip storekeepers with handheld Bluetooth scanners or mobile tablets. Scanning a barcode from 3 feet away takes 2 seconds compared to 2 minutes of typing.
  • Daily Rolling Audits (Staggered Physical Counts): Stop waiting for month-end shutdowns. Audit 2 to 3 specific racks daily, scan the physical count, and use automated ERP reconciliation tools to update variances immediately.

Comparison: Punitive Strategy vs. System-Driven Strategy

Challenge Area Traditional Punitive Approach System-Driven Solution
Incomplete Job Cards Issue warnings or withhold incentives Cap initial workload at 10 jobs/day to build confidence
Stock Discrepancies Blame store managers for missing items Implement barcode scanning and daily rolling counts
Data Accuracy Manual keyboard entry verification Point-and-shoot validation directly at point of action

Summary Checklist for Operations Leadership

  1. Focus on Process, Not Punishment: Incomplete data entry is a symptom of process complexity, not employee negligence.
  2. Deploy Barcodes Everywhere: Convert keyboard-heavy screens into fast, scan-assisted workflows.
  3. Pace the Implementation: Use small, daily targets to build long-term digital habits across all factory shifts.

Watch our idea on youtube in this video above

Struggling with ERP Shop Floor Compliance?

Finsys ERP provides built-in mobile scanning, automated PPC workflows, and staggered implementation toolkits tailored for modern manufacturing plants.

Schedule a Factory Workflow Audit

  • How to Fix ERP Inaccuracies & Shop Floor Resistance (Without Firing Staff)

  • Is bad ERP data slowing down your factory? Stop blaming operators and discover how staggered job cards and point-and-shoot barcoding solve stock discrepancies.

  • Think of your own Factory operator using a handheld barcode scanner in your manufacturing plant tagged with Finsys ERP labels.

Contact us link 

Commercial Credit Note… Finsys

Question

is there any condition for making commercial credit note ?

Under GST law, a Commercial Credit Note (also known as a Financial Credit Note) is an internal accounting adjustment used to pass on post-sale discounts or price reductions without altering or adjusting the original GST amount.
CBIC circulars (such as Circular No. 92/11/2019-GST and Circular 251/08/2025) clarify that a supplier can issue a Commercial Credit Note without meeting the strict conditions laid down in Section 15(3)(b) or Section 34 of the CGST Act.
Key conditions, restrictions, and rules for issuing a Commercial Credit Note include:

1. Core GST Conditions & Principles

  • No Tax Liability Reduction for the Supplier: The supplier cannot reduce their output tax liability originally declared in GSTR-1 / GSTR-3B.
  • No Input Tax Credit (ITC) Reversal for the Recipient: Because the supplier is not reducing the original GST paid on the transaction, the recipient is not required to reverse their availed Input Tax Credit for the discount amount received via a commercial credit note.
  • No Need for a Pre-existing Agreement: Unlike GST credit notes under Section 15(3)(b)(i), a commercial credit note does not require an agreement formed at or prior to the time of supply.
  • No Invoice Linkage Mandate: It can be issued as a lump-sum discount without strictly mapping back to individual tax invoices.

2. Operational & Documentation Conditions

  • No Requirement to Declare on the GST Portal: Commercial credit notes are not reported in GSTR-1 or GSTR-3B since they do not carry GST adjustments.
  • Clear Document Identification: The document must be clearly styled/captioned as a “Commercial Credit Note” or “Financial Credit Note” (not a “GST Credit Note”) so tax officers do not treat it as an un-adjusted GST credit note.
  • Accounting Entry: It should reflect purely as financial credit in the accounting ledger (credited to the buyer’s ledger and debited to discount/sales allowance accounts).

3. Key Distinction from a GST Credit Note

Feature GST Credit Note (Sec 34 & 15(3)) Commercial Credit Note
GST Adjusted? Yes (Output tax reduced) No (GST remains untouched)
Pre-agreement Needed? Yes No
Recipient ITC Reversal? Mandatory Not required
GST Portal Reporting? Required in GSTR-1 / 3B Not reported

India Corr Expo 2026 – Meet Finsys ERP at Mumbai

Finsys ERP Welcomes You to India Corr Expo 2026

Meet Finsys ERP at Bombay Exhibition Centre, Mumbai

HALL 4 ~ Stall A9 

Finsys ERP is pleased to welcome manufacturers, business owners, industry professionals, technology providers, and packaging leaders to India Corr Expo 2026.

The 2026 edition of IndiaCorr Expo will be held from 14 to 16 October 2026 at the Bombay Exhibition Centre, NESCO, Goregaon, Mumbai.

IndiaCorr Expo is one of the leading business platforms for the corrugated packaging, folding carton, paper, printing, and converting industries. It brings together corrugators, packaging manufacturers, machinery suppliers, technology providers, raw-material suppliers, and industry experts under one roof. ( For details.  : visit indiacorrexpo )

Finsys has been associated with the corrugated packaging and carton manufacturing industry for many years. We look forward to meeting our existing customers, business associates, industry friends, and new organisations at this important industry event.

india-Corr-Expo-ice-logo-common

India Corr Expo 2026

14–16 October 2026

Bombay Exhibition Centre, Mumbai

IndiaCorr Expo 2026 will provide opportunities to:

  • Discover the latest corrugation and packaging machinery.

  • Explore new technologies for paper, carton, and packaging businesses.

  • Connect with suppliers, manufacturers, buyers, and industry professionals.

  • Understand developments in the corrugated packaging industry.

  • Attend business meetings and industry knowledge sessions.

  • Explore opportunities for growth, collaboration, and expansion.

The official event programme also includes the 12th Annual Congress of ICCMA, bringing together leading voices and professionals from the corrugated packaging industry.

Meet Finsys ERP

Running a corrugated box or packaging manufacturing business involves managing multiple activities simultaneously:

  • Estimation and quotation.

  • Customer orders and production planning.

  • Paper, kraft, reel, sheet, and consumable inventory.

  • Machine scheduling and job work.

  • Wastage and production monitoring.

  • Quality control.

  • Dispatch and delivery.

  • Receivables and customer outstanding.

  • Costing, profitability, and management reporting.

Finsys ERP brings these activities together in one integrated business management system.

Our ERP solution helps corrugated box manufacturers, paper converters, packaging companies, and carton manufacturers improve visibility, control, and coordination across their business operations.

Why Corrugated Packaging Businesses Choose Finsys

Integrated business management

Manage marketing, sales, purchase, inventory, production, finance, dispatch, and reporting through an integrated ERP platform.

Better production planning

Plan jobs, machines, materials, and delivery schedules more effectively with improved coordination between departments.

Real-time inventory visibility

Track kraft paper, reels, sheets, boards, consumables, finished goods, and other inventory items with greater accuracy.

Accurate costing and profitability

Understand the cost and profitability of each customer order, product, job, or production activity.

Control over wastage

Monitor material consumption, production output, wastage, rejects, and process losses to improve operational efficiency.

Faster decision-making

Access useful management reports, dashboards, alerts, extracts, and business information without waiting for manual consolidation.

Improved receivables control

Track customer outstanding, payment commitments, overdue invoices, credit limits, and collection follow-ups.

Better coordination

Connect sales, production, stores, purchase, finance, dispatch, and management through a common system.

ERP Software For Corrugation & Corrugated Boxes

Finsys ERP for Corrugated Box Manufacturers

Finsys ERP is designed to support the practical requirements of corrugated packaging and box manufacturing businesses.

The system can help businesses manage:

  • Customer quotations and estimates.

  • Order booking and order status.

  • Paper and board requirements.

  • Reel and sheet inventory.

  • Corrugation and conversion processes.

  • Multi-stage production.

  • Job cards and production planning.

  • Material issue and consumption.

  • Wastage and rejection analysis.

  • Finished-goods stock.

  • Dispatch planning.

  • Transport and delivery details.

  • Customer-wise sales and profitability.

  • Receivables and payment follow-up.

  • Financial accounting and statutory reporting.

The objective is simple: provide business owners and management with reliable information for better control and better decisions.

Finsys ERP is one of the best selling ERP Softwares for Corrugated Box(Packaging)
Finsys ERP is one of the best selling ERP Softwares for Corrugated Box(Packaging)

 

Finsys ERP for the Packaging Industry

Finsys ERP can be configured for different types of packaging and paper-related businesses, including:

  • Corrugated box manufacturers.

  • Corrugation plants.

  • Paper and kraft-paper converters.

  • Duplex-board and carton manufacturers.

  • Folding-carton businesses.

  • Printed packaging manufacturers.

  • Packaging material suppliers.

  • Job-work and conversion units.

  • Manufacturers operating multiple machines or locations.

Every business has its own processes, costing methods, product structures, and reporting requirements. Finsys ERP can be adapted to the operational needs of the organisation.

A Practical ERP for Business Growth

Technology should not make business operations more complicated. It should make information easier to access, processes easier to control, and decisions easier to take.

Finsys ERP is developed with a practical understanding of manufacturing, packaging, accounting, inventory, production, costing, customer management, and business reporting.

Our team works with management and operational teams to understand existing processes and implement an ERP system that supports actual business requirements.

Meet Our Team at India Corr Expo 2026

Are you planning to improve your business systems?

Are you looking for better control over production, inventory, costing, receivables, and profitability?

Are you considering ERP software for your corrugated box or packaging business?

We would be pleased to meet you during India Corr Expo 2026.

During the meeting, we can discuss:

  • Your current business processes.

  • Existing software and operational challenges.

  • Production and inventory requirements.

  • Costing and profitability concerns.

  • Reporting and management information needs.

  • ERP implementation possibilities.

  • Integration and customisation requirements.

  • Future business expansion plans.

Let Us Discuss Your Business

A short discussion can help identify where ERP software may improve your business operations.

Whether you are:

  • Using spreadsheets and manual registers.

  • Working with separate software systems.

  • Facing stock and production mismatches.

  • Finding it difficult to calculate accurate job costing.

  • Experiencing delays in management reporting.

  • Planning to expand your manufacturing operations.

  • Looking for a more integrated ERP solution.

Finsys can help you evaluate your requirements and identify a suitable way forward.

Book a Meeting with Finsys

To schedule a meeting with our team at India Corr Expo 2026, please contact us in advance.

You can discuss your preferred date and time, business requirements, and the areas you would like to see during the demonstration.

Request a Meeting or ERP Demonstration

send a email to corporate(at) Finsys.in  or Whatsapp / Phone call at +919312608426 with following details

Name:
Company:
Mobile number:
Email:
City:
Business type:
Requirements or message:

Event Details

Particular Details
Event India Corr Expo 2026
Dates 14–16 October 2026
Venue Bombay Exhibition Centre
Location NESCO, Goregaon, Mumbai, Maharashtra 400063
Industry Corrugated packaging, paper, carton, printing, and converting
Associated event 12th Annual Congress of ICCMA

 

Visit India Corr Expo 2026

IndiaCorr Expo 2026 is an opportunity to see the latest developments in corrugated packaging, connect with industry professionals, explore new technologies, and identify solutions for business growth.

Finsys ERP looks forward to welcoming you at the exhibition.

Meet Finsys. Discuss your business. Explore better control with ERP.

See You at India Corr Expo 2026, Mumbai

[Button: Visit Official IndiaCorr Expo Website www.indiacorrexpo.com ]


FAQ Section

Frequently Asked Questions

When will India Corr Expo 2026 be held?

India Corr Expo 2026 will be held from 14 to 16 October 2026.

Where will India Corr Expo 2026 be held?

The exhibition will be held at the Bombay Exhibition Centre, NESCO, Goregaon, Mumbai, Maharashtra.

What is India Corr Expo?

IndiaCorr Expo is a business exhibition and networking platform for the corrugated packaging, folding carton, paper, printing, and converting industries.

What does Finsys ERP offer to corrugated box manufacturers?

Finsys ERP helps manage sales, estimation, production, inventory, costing, wastage, dispatch, receivables, accounting, and management reporting through an integrated ERP system.

Can I request a Finsys ERP demonstration?

Yes. Visitors can request a meeting or ERP demonstration by submitting the enquiry form on this page.

Can Finsys ERP be configured for our specific business?

Finsys ERP can be evaluated and configured according to the organisation’s processes, products, manufacturing activities, reporting requirements, and operational needs.

Does Finsys ERP support packaging and carton businesses?

Yes. Finsys ERP is suitable for businesses involved in corrugated boxes, packaging, paper conversion, cartons, printing, and related manufacturing activities.

Focus keywords:

  • India Corr Expo 2026

  • Corrugation ERP software

  • Corrugated box ERP

  • Packaging ERP software

  • ERP for corrugated box manufacturers

  • Finsys ERP Mumbai

  • Corrugated packaging software

contact us at this page

Advance Tax 2nd Installment Due Sept 15: Calculation, Penalties & Complete Guide

Advance Tax Due Date Reminder: Secure Your 2nd Installment by September 15

The second quarter of the financial year is closing, which means the September 15 deadline for your second Advance Tax installment is rapidly approaching. Failing to estimate your income correctly or missing this deadline can lead to compounding penal interest.

Here is a comprehensive guide to understanding, calculating, and paying your second advance tax installment.

Who is Legally Required to Pay Advance Tax?

The “Pay As You Earn” scheme applies to almost everyone generating substantial income outside of a standard salary where TDS is fully deducted. You must pay advance tax if your total estimated tax liability for the financial year (after deducting TDS/TCS) is ₹10,000 or more.

  • Salaried Individuals: If you earn significant additional income (e.g., rental income, capital gains from stocks/mutual funds, high-interest income, or dividends).
  • Business Owners & Corporates: All companies, partnership firms, and LLPs.
  • Freelancers & Professionals: Consultants, doctors, lawyers, and gig workers.
  • Exemption: Resident senior citizens (aged 60 or above) who do not have any income from a business or profession are entirely exempt from paying advance tax.
  • Presumptive Taxation (Section 44AD/44ADA): Taxpayers under this scheme do not pay quarterly; their single deadline for 100% advance tax is March 15.

Advance Tax Installment Schedule (Standard Taxpayers)

Due Date Cumulative Tax Payable Amount to be Paid in this Quarter
On or before June 15 15% of total tax liability 15%
On or before September 15 45% of total tax liability 30% (45% minus what was paid in Q1)
On or before December 15 75% of total tax liability 30%
On or before March 15 100% of total tax liability 25%


How to Calculate Your September 15 Liability (With Example)

You don’t need to know your exact year-end income, but you must make an accurate projection.

  1. Estimate Gross Income: Add up your expected salary, business profits, rent, interest, and capital gains for the entire financial year.
  2. Apply Deductions: Subtract your planned Chapter VI-A deductions (80C, 80D, etc.).
  3. Calculate Total Tax: Apply the current income tax slab rates (Old or New Regime) to your net estimated income.
  4. Deduct TDS/TCS: Subtract any tax that has already been deducted at the source by your employer, clients, or banks.
  5. Calculate the 45% Target: Multiply the remaining tax liability by 45%. Subtract any amount you already paid in the June 15 installment.

Practical Example: Mr. Sharma estimates his total net tax liability for the year (after TDS) to be ₹1,00,000.

  • By June 15: He paid 15% (₹15,000).
  • By Sept 15: He needs to reach 45% cumulative (₹45,000).
  • Payment Due Now: ₹45,000 (Target) – ₹15,000 (Already Paid) = ₹30,000.

Penalties for Missing the September 15 Deadline

The Income Tax Department is strict about timely collections. Shortfalls trigger mandatory interest:

  • Section 234C (Shortfall in Installments): If your September payment falls short of the 45% target, you will be charged 1% interest per month for 3 months on the shortfall amount. (Note: A slight leniency is given if you pay at least 36% by Sept 15, avoiding 234C for this specific quarter).
  • Section 234B (Default in Payment): If your total advance tax paid by the end of the financial year is less than 90% of the assessed tax, you will face an additional 1% interest per month starting from April 1 of the following year until the tax is fully paid.

Step-by-Step Online Payment Guide

  1. Visit the official e-Filing portal (incometax.gov.in).
  2. Navigate to e-Pay Tax (you can do this pre-login or post-login).
  3. Enter your PAN/TAN and verify via OTP.
  4. Select the Income Tax box and choose the correct Assessment Year (e.g., AY 2027-28 for FY 2026-27).
  5. Select Payment Type as Advance Tax (100).
  6. Enter the tax amount and pay via Net Banking, Debit Card, NEFT/RTGS, or UPI.
  7. Crucial: Download and save the Challan Receipt (CRN/BSR code) to report in your final ITR.

    Website :- https://finsys.co.in/
     

    Youtube:- https://www.youtube.com/@SangeetGuptaFinsysERPSoftware