Moulds And Dies & Export Supplies, Goods and Services Tax - GST

[CABIJENDERKUMAR BANSAL]

Hello Sir, The design for Moulds/Dies/Tools was received from Foreign Entity (Customer). The Supplier (In India) makes the Mould/Die/Tool as per specifications in India and charges the same to Customer (Reimbursement + Some profit element). The Mould/Die/Tool never go to foreign entity (Customer) But the supplier suppliers items manufactured using the mould/die/tool. Please explain the taxability of making such mould/die/tool and taking reimbursement from Customer.

Posts / Replies

[Spudarjunan S]

Dear Sir,

Hope you will be charging for the items supplied from such mould/die/tool. In such case induce the cost of such mould/die/tool into the price of the items supplied.

When you are getting reimbursement from the customer for such mould/die/tool you treat such consideration as advance for the items manufactured using the mould/die/tool. Any how for the time of supply of goods the date of receipt of payment is not considered as per notification no.66/2017 CT dated 15.11.2017.

Kindly look into RBI/FEMA regulations for the receipt of advance for export of goods to check the restrictions if any.