Goods and Services Tax – Started By: – K.Srinivasan Kuppuswamy – Dated:- 4-12-2017 Last Replied Date:- 9-3-2018 – Sir,We are casting manufacturing industry . To manufacture castings we need to develop tool as per the overseas customer specification. Once the tool is developed and after submission of samples approved by customer we used to raise debit note on overseas customer . The tool retained by us for further manufacture of components .In the pre GST regime there is no excise duty applicable on debit for the tool cost recovery from overseas customer.Please provide your valuable views in the GST regime whether GST is applicable on debit note on overseas customer for the tooling cost recovery for which the tool retained by us for further
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
retained by us for further manufacture of components.Whether the debit note will be treated as export of goods or export of service and GST applicability RegardsK Srinivasan – Reply By Ramaswamy S – The Reply = Yes the tool is retained for the purpose of manufacture of components. The tool is developed and the sample is approved by the customer. It can be treated as a supply of service (export of service). No GST is payable.If you have to treat it as supply of goods, then it cannot be considered as an export as there is no shipping bill to prove that the goods have left the country.The point of service is intra state and CGST+SGST is payable, the ITC of which cannot be claimed being an outward supply. Further, as the customer is not in the
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
re is no excise duty applicable on debit for the tool cost recovery from overseas customer.Please provide your valuable views in the GST regime whether GST is applicable on debit note on overseas customer for the tooling cost recovery for which the tool retained by us for further manufacturing of components.Can we split the tool cost into two one portion is tool cost and other portion is development charges.Development charges debit note on export customer will attract GST.Whether can we split tool cost.manufactures those who are developing the tool for customer for manufacturing of components unable to raise debit note or invoice on overseas customer in the GST regime.What is the ultimate remedy? RegardsK.Srinivasan – Reply By K.Srinivasan
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =