Identifying Manufactured Goods for Personal Consumption

Although you are liable to pay GST on manufactured goods in the following scenarios, you cannot claim ITC on these goods:

• Personal consumption of manufactured goods

• Manufacture of exempted goods

  You cannot claim ITC on GST-exempted goods that are manufactured using raw materials and services applicable for GST.

• Scrapped goods

To classify the goods that fall under these scenarios, you use the stock transfer process to move these goods to a logical unit (not a physical one). You must create the stock transfer orders for personal consumption goods using the document type in the UDC table 75I/DP.

You use the Reclassify Stock Transfer for Manufactured Goods program (P75I817), ZJDE002 version to declare that the goods in the stock transfer orders are for personal consumption or other categories where ITC is not applicable. The P75I817 program, ZJDE002 version, displays all the stock transfer orders that has the document type from the UDC table 75I/DP.

The system saves the declared stock transfer orders along with the reason code in the Reclassify Stock Transfer for Manufactured Goods table (F75I836).