Return of goods sent under returnable gate pass

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2018 a supplier is clearing goods under tax invoice. while clearing the goods he is packing the goods in packing materials like plastic bins/pallets for which he is preparing returnable gate pass. after unloading at customer end these pallets are returned to supplier.(seperate eway bill is prepared for both documents)

my query is
As per rules, customer has to raise non returnable gate pass for sending packing material and eway bill

however in some customers are refusing to give his delivery challans and asking us to take back the packing materials on our own DC.

My query is

1 whether customer can put in & out entry and return the packing material under the returnable gate passed sent by the supplier

2 in such cases for bringing these packing material, whether the supplier can issue eway bill for the same rgp sent (while clearing the goods to customers) for inward the material.

can any clarify

thanks in advance
regards
ramkumar ms

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 In the scenario described, where a supplier is using returnable packing materials (like plastic bins or pallets) and preparing returnable gate passes (RGPs), there are specific considerations under GST rules:

1. **Returnable Gate Pass (RGP) for Sending Packing Materials:**
- When the supplier sends the goods along with returnable packing materials to the customer, they typically prepare an E-way bill for the goods being sent (taxable supply) and a separate RGP for the returnable packing materials.
- The RGP serves as proof that the packing materials are sent along with the goods and are expected to be returned.

2. **Customer's Role in Return of Packing Materials:**
- Ideally, the customer should provide a non-returnable gate pass (NRGP) when returning the packing materials to the supplier. This documents the return of the materials separately from the goods received.
- However, if customers are refusing to issue a separate NRGP and instead ask the supplier to manage the return of packing materials, the supplier faces a practical challenge.

3. **Inward Movement of Packing Materials:**
- For the inward movement of the returnable packing materials (when they are returned by the customer), the supplier can issue an E-way bill referencing the original RGP sent while clearing the goods to the customer.
- The E-way bill should specify that it is for the return of packing materials (which were originally sent under the RGP with the goods).

### Clarifications on Specific Queries:

- **Query 1: Whether customer can put in & out entry and return the packing material under the returnable gate pass sent by the supplier?**
- Ideally, the customer should issue a separate non-returnable gate pass (NRGP) for the return of packing materials. This ensures proper documentation and compliance with GST rules.
- If the customer refuses to issue an NRGP and insists that the supplier manages the return, the supplier can still process the return of packing materials using the original RGP sent with the goods. However, this is not the preferred method under GST rules.

- **Query 2: Can the supplier issue an E-way bill for the inward movement of packing materials under the original RGP sent while clearing the goods?**
- Yes, the supplier can issue an E-way bill for the inward movement of the packing materials. This E-way bill should reference the original RGP number that was used when the goods were initially sent to the customer.
- The E-way bill should clearly mention that it pertains to the return of packing materials that were sent along with the goods to the customer.

### Key Considerations:

- **Documentation Compliance:** It's important to adhere to GST documentation requirements. Ideally, both outward and inward movements of packing materials should be accompanied by proper gate passes or E-way bills.
- **Customer Cooperation:** Educate customers about the necessity of issuing an NRGP for the return of packing materials. This helps in maintaining clear records and compliance.
- **Record Keeping:** Maintain records of all RGPs, E-way bills, and any other related documents to support the movement of goods and packing materials.

In summary, while the ideal practice involves customers issuing an NRGP for the return of packing materials, suppliers can manage the return using the original RGP if customers refuse to issue separate documentation. However, this should be managed carefully to ensure GST compliance and proper record-keeping.

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