AMORTISATION REQUIREMENT UNDER GST
Query (Issue) Started By: – CABIJENDERKUMAR BANSAL Dated:- 18-6-2018 Last Reply Date:- 17-11-2018 Goods and Services Tax – GST
Got 5 Replies
GST
X(USA) has signed contract with Y(India) for production of goods & export to X.Mould was to be provided by X as per contract. X has given advance of ₹ 50 L to Y for purchase of mould in India & to be retained by Y for production. Y purchased mould from Z(India) & availed GST input on this. Should Y raise export invoice of mould to X(though physically to be retained by Y)? or Y shall add amortised cost of mould in export invoices of goods to X? is input eligible on purchase of mould by Y from z.
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir <\/p>\n
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\nThe most confusing circular is the circular dated 8th June 2018 regarding moulds and dies. It has raised more doubts rather than clarity.
\nReply By Ramaswamy S:
\nThe Reply:
\n1.1 – situation where the tools are moved from the OEM to the component manufacturer. Not a supply. No tax payable. No reversal of credit.
\n1.2 Further clarifies point 1.1 that in such case no need to add the amortised value to the component.
\n1.3 situation (bill to ship to) – retained by the component manufacturer – no movement of tool from OEM to component manufacturer – Credit to be reversed. Amortised cost to be included in the value.
\nHad the clarification at point 1.2 be after 1.3, then the issue would have been clear. But that was not the intention.
\nRegards\n<\/p>\n
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