TaxTMI 
TaxTMI 
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?
GST on stock transfer of Empty Cylinders
30 Dec 2018 
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Stock transfer of empty cylinders: treated as supply between distinct registrations, attracting GST unless specific exemption applies.
Inter unit movement of empty cylinders between separately registered establishments is treated as 'supply' under Schedule I even without consideration, so such stock transfers prima facie attract GST and require invoicing; valuation can be nominal or book value where recipient can claim full input tax credit. Administrative circulars addressing temporary movements of tools and spares may be invoked but do not expressly exempt empty cylinders, so taxpayers commonly use delivery challans, e way compliance, and conservative valuation while disputing applicability where initial supply included cylinder cost. (AI Summary)
Inter unit movement of empty cylinders between separately registered establishments is treated as 'supply' under Schedule I even without consideration, so such stock transfers prima facie attract GST and require invoicing; valuation can be nominal or book value where recipient can claim full input tax credit. Administrative circulars addressing temporary movements of tools and spares may be invoked but do not expressly exempt empty cylinders, so taxpayers commonly use delivery challans, e way compliance, and conservative valuation while disputing applicability where initial supply included cylinder cost. (AI Summary)