Goods and Services Tax – Started By: – Kaustubh Karandikar – Dated:- 30-12-2018 Last Replied Date:- 6-1-2019 – XYZ (Trader in Maharashtra) is receiving filled cylinders of Refrigerant Gas from its own manufacturing unit at Gujarat. XYZ is re-selling these filled cylinders to the customers. The customer is sending back the empty cylinder to XYZ which in turn XYZ is sending back to their unit in Gujarat. Is XYZ liable to pay GST on the empty cylinders send back to Gujarat from their Maharashtra unit? – Reply By KASTURI SETHI – The Reply = Two types of supplies are involved. B to B and B to C and back from C to B. Cost of transportation, loading , unloading etc. from B to B, B to C and back are already borne and GST paid. Empty cylinder is property of the consumer. Already paid by the consumer. Hence no GST is required to be paid again. – Reply By Kaustubh Karandikar – The Reply = Respected Shri Sethi Sir, Thanks for your kind advice. However, my view is given below: Following are the pr
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ply under Section 5(1) of IGST Act, 2017. As per Section 7(1)(c) of CGST Act, 2017, Supply includes the activities specified in Schedule I, made or agreed to be made without a consideration. As per Schedule – I (2) of Section 7, supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business, will be treated as supply, even if made without consideration. Section 25(4) of CGST Act states that, a person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. Therefore, establishments of same person with distinct GST Registration Numbers will be treated as 'distinct persons'. Thus, inter-state stock transfers or branch transfer will be subject to GST. Even intra-state stock transfe
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nies. However, no GST would be payable. – Reply By KASTURI SETHI – The Reply = Respected Sh.Karandikar Ji,. Sir, I am very eager to know your comments on the views of M/s. YAGAY AND SUNS, Sirs. His reply is ' Gaagar Mein Sagar . He has covered so many aspects in his brief reply. Will you please quench my thirst ?? – Reply By Kaustubh Karandikar – The Reply = Sir,I full appreciate the advice given by the experts. But since there is no specific exemption for empty cylinders, it will be treated as supply to distinct person and GST will be liable though that may not be the intention of the govt. – Reply By HIREGANGE& ASSOCIATES – The Reply = Circular 80/54/2018-GST dated 31-12-2018 brings out that earlier circular was for movement of goods on wheels and hence in a conservative view, what can be looked at is to charge GST, however value adopted can be as per the second proviso to Rule 28 of the CGST Rules 2018 (any value declared in the invoice, would be deemed OMV) – Reply By YAGAY and
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