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Emty barrells inter state transfer.

SHAHHUL IQBAL (article assisstant) (56 Points)

17 May 2021

Hi,

we are going to purchase mango in large quantity from a inter state suppliers, we have to send empty plastic barrels to the party in order to transfer as per quality standards.

Is it attract gst liability. The party is a registered person as this is a mere purchase of raw material there is no agreement with party.

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4 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 17 May 2021

Mangoes attract no GST
As per GST Law, there is no GST payable on mangoes, fresh. So the rate of GST payable on mangoes, fresh is nil rate

SHAHHUL IQBAL (article assisstant) (56 Points)
Replied 17 May 2021

My concern is about the trasnsfer of empty barrels

CA Jasbir Singh (CA) (100 Points)
Replied 18 May 2021

In this regards, my point of view is that, GST will be applicable only on the value of goods and Recipient will prepare the Delivery Challan and will return back the packing containers. Further, this issue has been clarified by the Board vide Circular No. 53/2018 dated 09.08.2018, the relevant portion is reproduced below:-

"Though, the refinery would be liable to pay GST on such returned quantity of petroleum gases, when the same is supplied by it to any other person. It is reiterated that this clarification would be applicable mutatis mutandis on other cases involving supply of goods, where feed stock is retained by the recipient and remaining residual material is returned back to the supplier. The net billing is done on the amount retained by the recipient."