Question21: Chemical is received in a durm and ITC is availed on the chemical received. The empty drums of the said chemical is returned back to the supplier without any consideration. Is GST required to be paid on the empty drums sent back to the supplier'

Answer: Sending of empty drums to the supplier or any one else without consideration is not taxable there is one exception which is always it is supply to related party.

ITC is availed on chemical not on drum although it's value was added in the value of chemical.

The earlier judgment of CENVAT regime will apply for this but with one difference that is if the consideration is received it will be taxed. (Reply dt. 13/12/2017)