GST on Tooling development charges – Export
Query (Issue) Started By: – K.Srinivasan Kuppuswamy Dated:- 4-12-2017 Last Reply Date:- 9-3-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Sir,
\nWe 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 .
\nThe tool retained by us for further manufacture of components .
\nIn the pre GST regime there is no excise duty applicable on debit for the tool cost recovery from overseas customer.
\nPlease provide your valuable views in the GST regime whether GST is applicable on debit note on<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n new tool as per customer specifications \/ drawings and debit note raised for recovery for the tool. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n debit note on overseas customer . = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on Tooling development charges – Export Query (Issue) Started By: – K.Srinivasan Kuppuswamy Dated:- 4-12-2017 Last Reply Date:- 9-3-2018 Goods and Services Tax – GSTGot 5 RepliesGSTSir, 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 … Continue reading “GST on Tooling development charges – Export”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-9273","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9273"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/9273\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nTool retained by us for further manufacture of components.
\nWhether the debit note will be treated as export of goods or export of service and GST applicability
\nRegards
\nK Srinivasan
\nReply By Ramaswamy S:
\nThe Reply:
\nYes 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.
\nIf 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.
\nThe point of service is intra state and CGST+SG<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe tool retained by us for further manufacture of components .
\nIn the pre GST regime there is no excise duty applicable on debit for the tool cost recovery from overseas customer.
\nPlease 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.
\nCan we split the tool cost into two one portion is tool cost and other portion is development charges.
\nDevelopment charges debit note on export customer will attract GST.
\nWhether can we split tool cost.
\nmanufactures those who are developing the tool for customer for manufacturing of components unable to rai<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n