Applicability of GST on spares supplied as part of the service job
Query (Issue) Started By: – Seena James Dated:- 29-11-2018 Last Reply Date:- 4-12-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Sir,
One of our client is engaged in repairs, maintenance & installation of electronics and navigational equipments in foreign ships and receives payment in USD. Mostly the place of supply of service is in Indian port.
Whether GST is applicable on the supply of spares by the company as part of the service job or should it be treated as an export?
Looking forward to hearing from you.
Thank you
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view yes.
Reply By Seena James:
The Reply:
Sir,
Does it mean that IGST is ap
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S shall be as per this section.
Section 9
Notwithstanding anything contained in this Act,
(a) where the location of the supplier is in the territorial waters, the location of such supplier; or
(b) where the place of supply is in the territorial waters, the place of supply,
shall, for the purposes of this Act, be deemed to be in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
Section 9 overrides the entire Act as far as POS is to be ascertained.
For ascertaining the POS you need to determine the distance between the ship in water to the nearest state and clients location and ascertain the C+S or I accordingly.
Though payment is received in USD, it shall not be export.
Thanks and R
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