Home Forum Goods and Services Tax - GST Month 9 2021 2021 (9) This
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GST ON PATTERNS - Goods and Services Tax - GSTExtract Sirs, we are casting manufacturers by Name Kumar alloys, and regularly receiving orders from Anderson Inc, Germany. While releasing purchase order, the buyer mentioned ( value is for example only changing order to order case ) that, casting value ₹ 2 lakhs and pattern cost is ₹ 10000. Then our Kumar Alloys, making the pattern from PHP patterns, Coimbatore and pay from our bank account and received the pattern bill in Kumar Alloys name and availing the ITC paid for the pattern. While sending the castings to Anderson INC, pattern is not returned physically by Kumar Alloys. Since pattern is not available physically, the Customs officials not allowing to mention about pattern in the Bill of Supply, and hence the cost of pattern is adjusted as Packing Charges in the invoice by Kumaran Alloys. This scinerio is happening for the whole year on different supplies. My question is. Is it correct?, Is there any classifications issue in future? Is the pattern is our Asset? Because we are receiving the cost of pattern from the buyer separately! What is our position if the buyer ask the pattern back since they paid cost of pattern already. Kumar Alloys is doing this regularly like this. Please clarify sir.
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