Clarification on GST for Polybutylene Feedstock and LPG for Poly Iso Butylene Manufacturing
<p><span>In Circular No. 29/3/2018-GST, dated January 25, 2018, the Ministry of Finance, Government of India, provides crucial clarifications on the applicability of GST on Polybutylene feedstock and Liquefied Petroleum Gas (LPG) retained for the manufacture of Poly Iso Butylene and Propylene or Di-butyl para Cresol. This circular addresses issues regarding the GST levied on the net quantity of raw materials retained by manufacturers.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>Raw Material Supply</strong>: Oil refineries supply Liquefied Petroleum Gas (LPG) and Polybutylene feedstock to manufacturers of Poly Iso Butylene and Propylene or Di-butyl para Cresol through dedicated pipelines.</span></li><li><span><strong>GST Levy</strong>: The GST Council recommended that GST should be levied on the net quantity of Polybutylene feedstock and LPG retained by the manufacturers for their production process.</span></li><li><span><strong>Clarification Issued</strong>: The circular clarifies that GST will be payable by the refinery only on the net quantity of Polybutylene feedstock and LPG retained by the manufacturers. Returned quantities supplied to any other person by the refinery will also attract GST.</span></li></ol><p><span>This circular aims to provide clear guidelines on the GST implications for manufacturers and refineries involved in these transactions, ensuring consistent implementation.</span> <a href="https://cms.plasament.com/storage/circularno-29-cgst.pdf">circularno-29-cgst</a><br> </p>