GST on used empty cartoons/bobbins/corrugated boxes

[Narendra Soni]

Dear experts,

Kindly suggest, whether GST is applicable on used empty cartoons/bobbins/corrugated boxes at the time of sale, if yes, GST rates please.

[KASTURI SETHI]

Dear Querist,

Before 1.7.17, these were exempted by way of Board's circular based on the judgement of Supreme Court. At present, the extract of CBEC's FAQs will be helpful to you for arriving at some reasonable decision.

61. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?

Ans. GST will be levied on the value charged for the supplyonly.

62. How will disposal of scrap be treated in GST?

Ans. If the disposal is in the course or furtherance of business purposes, it will be considered as a supply.

It is almost clear. However, these FAQs have no statutory force. So it requires Board's clarification on the basis of earlier circular.

AI Summary

GST on Used Cartons and Boxes: Clarification Needed on Applicability and Statutory Authority of CBEC FAQs A forum participant inquired about the applicability of GST on the sale of used empty cartons, bobbins, and corrugated boxes. An expert responded, noting that prior to July 1, 2017, these items were exempt based on a Supreme Court judgment and a Board's circular. Currently, the CBEC's FAQs suggest GST is applied to the value charged for supply and that disposal of scrap in business contexts is considered a supply. However, these FAQs lack statutory authority, and further clarification from the Board is necessary.