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

[Asked by 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

Place of supply rules determine GST on spares supplied with ship repair services, not export treatment despite foreign payment.
GST applies to spares supplied as part of ship repair services; place of supply is the location of the goods at the time of service under Section 13(3) of the IGST Act, and where the ship is in territorial waters Section 9 deems the place of supply to be the nearest coastal State or Union territory. Taxation follows that deeming: co located supplier and place of supply attract CGST and SGST, while differing States attract IGST. Payment in foreign currency does not make the supply an export.