GST on stock transfer of Empty Cylinders
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 30-12-2018 Last Reply Date:- 6-1-2019 Goods and Services Tax – GST
Got 11 Replies
GST
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?
\nReply By KASTURI SETHI:
\nThe Reply:
\nTwo 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.
\nReply By Kaustubh Karandikar:
\nThe Reply:
\nRespected Shri Sethi Sir,\n<\/p>\n
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\n * Identical definition is given for inter – state supply under Section 5(1) of IGST Act, 2017.
\n * 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.
\n * 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.
\n * 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&<\/p>\n
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\nReply By YAGAY andSUN:
\nThe Reply:
\nSuch empty cylinders would move on Delivery Challan and E Way bills shall also be accompanies. However, no GST would be payable.
\nReply By KASTURI SETHI:
\nThe Reply:
\nRespected 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 ?
\n?
\nReply By Kaustubh Karandikar:
\nThe Reply:
\nSir,
\nI 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.
\nReply By HIREGANGE& ASSOCIATES:
\nThe Reply:
\nCircular 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 <\/p>\n
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