Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products – regarding

GST on net retained feedstock: supplier pays tax only on quantity retained; returned gas taxed on resale.

Where a refinery supplies petroleum gases through continuous dedicated arrangements and the recipient retains part for manufacture while returning the remainder, GST is payable by the refinery only on the net quantity retained; returned quantities become taxable when supplied by the refinery to another person. This net-billing rule applies mutatis mutandis to similar feedstock retention-and-return supplies.