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VI. GST Update:
1. IM/s. Dolphine Die Cast (P) Ltd, Karnataka, Advance Ruling No.: KAR/ADRG/35/2020, Date: 20.05.2020
Facts of the case:
The applicant manufactures steel Die as per the requirement of the foreign customer and raises invoice for the dies and receives the payment. But the dies are not exported physically. The applicant uses these dies for making die castings, which are exported. The applicant retains the die till the completion of the export order and then, either exports the dies to the overseas customer, or scrap the die as per the instructions of the customer. The applicant seeks ruling on how to pay tax and avail ITC on these transactions.
Advance Ruling:
At the first instance, the dies are not moved out of the country, so it is an intra-state transaction according to Section 2(5) of IGST Act, 2017. When die scrap is supplied to third party the applicant has to issue intra/interstate tax invoice depending upon the nature of the transaction and pay the applicable tax.
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[ Contribution by CA. Vijay Gupta ]
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