Applicability of GST on spares supplied as part of the service job

[Guest]

Sir,

One of our client is engaged in repairs, maintenance & installation of electronics and navigational equipments in foreign ships and receives payment in USD. Mostly the place of supply of service is in Indian port.

Whether GST is applicable on the supply of spares by the company as part of the service job or should it be treated as an export?

Looking forward to hearing from you.

Thank you

AI Summary

GST Applies to Spares Supplied on Foreign Ships in Indian Ports; Section 9 of IGST Act Clarifies Non-Export Status. A client involved in repairing, maintaining, and installing electronic equipment on foreign ships in Indian ports queries about the applicability of GST on spares supplied during service. The consensus among respondents is that GST applies, with specifics depending on the location of the service provider and the place of supply. If both are in the same state, CGST and SGST apply; if in different states, IGST is applicable. Despite payments being in USD, the transaction is not considered an export due to the location within Indian territorial waters, as clarified by Section 9 of the IGST Act.