Supply of Goods or service, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ is receiving moulds for trials from PQR(Customer). XYZ is making bottles from these moulds on trial run basis and sending the said bottles to PQR. XYZ is charging trial run charges to PQR. Will this transaction will be treated as supply of goods or supply of service?

Posts / Replies

[KASTURI SETHI]

It is a supply of service. See the following extract from 2010 (261) E.L.T. 737 (A.A.R.) = 2009 (9) TMI 56 - AUTHORITY FOR ADVANCE RULINGS (para no.5.1) AAR, New Delhi Applicant : GUTHY RENKER MARKETING PVT. LTD.

"The Act does not make a distinction between 'a trial run' and ‘service’.