Capital Goods movement

[AnilKumar Vyas]

Dear Experts,

Thanks for your continuous valuable support and suggestions..............

We purchased some capital goods on behalf of us but now we would like to issue invoice to our customer for those capital items.

Please suggest, is movement of capital goods required, if that will be used in our factory for manufacturing of customer product? Also request to give the reference of section or rules available.

Regards

[KASTURI SETHI]

Issuance of invoice to your customer means your customer will be the owner of those capital goods and those goods will remain in your factory for manufacture of your customer's products. It will fall under the definition of 'Supply of services'. You will use those capital goods and it is presumed that consideration will be flowing to you directly or indirectly. Movement is not required but you will pay GST at the same rate of Central Tax on supply of like goods.SAC 9973.

This is my view.

[AnilKumar Vyas]

Dear Sir,

Thanks for your valuable opinion ...........

Thanks for give the reference of any rule or section of GST.

Regards

AI Summary

Supply of services: invoiced capital goods retained for manufacture treated as service with GST payable at like goods rate.
The purchase-invoiced capital goods retained at the supplier's factory for manufacture of the customer's products is treated as a Supply of Services, so no physical movement to the customer is required; the supplier must account for GST on the supply, applying the rate applicable to like goods.