QUESTION
We are the manufacturer of Ice Cream with Brand name `Cream-bell`, company transferred the finished goods from our plants to other plants/depot/branches within/outside the State against IGST billing as well as sales to customers within the State and outside the State. We would like to inform you that all the finished goods i.e. Ice Cream is packed in small corrugated box and after that in plastic crates for carrying the goods safely from plant to depot/branch/customers end. All these plastic crates are on returnable basis and for “own used”. After delivery of the finished goods our customer sent back all these plastic crates with the same vehicle and sometimes quantity of plastic crate may vary with original challan qty. Every consignment which value Rs. 50,000/-, moved on proper GST invoice along with delivery challan of plastic crate and used e-waybill for such movements. Sometimes, the company sent empty plastic crate to other plants outside the state on delivery challan and used e-waybill. All these are not normal supply, which are mentioned over the e-waybill as “Outward for Own Use”. Please give your opinion, whether we should send delivery challan of plastic crate along with the vehicle for returnable plastic containers while the cost of packing are includes in FG price? As we confirmed from Amul/Mother dairy, they are not sending any delivery challan for empty plastics crate in case of inert and intra state supplies so please give your valuable advice on this or suggest appropriate procedure to movement of plastic crate.

ANSWER

Facts of the case: Company transfers ice cream packed in small corrugated box and after that in plastic crates for carrying the goods safely from plant to depot/branch/customers end. All these plastic crates are on returnable basis and for “own used”. After delivery of the finished goods customer sent back all these plastic crates with the same vehicle and sometimes quantity of plastic crate may vary with original challan qty.

Law Applicable:
RULE 55. Transportation of goods without issue of invoice
(1) For the purposes of-
(a) supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known,
(b) transportation of goods for job work,
(c) transportation of goods for reasons other than by way of supply, or
(d) such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered not exceeding sixteen characters, in one or multiple series, in lieu of invoice at the time of removal of goods for transportation

CGST RULE 138
(1) Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees'
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01 , electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:

Interpretation:
After delivery of finished goods customers send back all plastic crates. Returning of empty plastic crates by the customer is transportation of goods for reasons other than by way of supply. Therefore you are required to issue delivery challan. Also as per Rule 138 for transportation of goods even for reason other than supply E way bill is required to be issued if consignment value of goods exceeds Rs 50000/-.

Conclusion:
For returning of empty crates you are required to issue challan along with E Way Bill.