GST leviability at the Capital Goods Reimport in india

[jamal zaidi]

Dear All,

Need your professional rigor view, at the below query-

X company registered in India, purchased a machinery from Japan for manufacturing purposes, now due to some technical fault the Machine has to be export to Japan for repair purpose and as soon as this machine repaired the same has to be Re-import to "India".

scenario

Asset purchase from japan for manufacturing purpose and now need repair

now want to export to Japan for repair

and repair reimport this machine to India

Q- What would be the applicability of GST & Custom for its export to Japan

Q- what would be the leviability of GST & Custom for its Re-Import to India

Q- treatment in case the above machine (a) covered in free service agreement or (b) not covered in free service agreement

I would be thankful if get the revert speedy

[YAGAY and SUN]

In our view IGST is applicable on reimportation of goods into India.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of shri Yagay.

[Alkesh Jani]

Sir, Please refer Notification No.46/2017-Customs dated 30th June,2017. Hope this will help you.

Thanks,

With regards

AI Summary

IGST on re importation applies when capital goods sent abroad for repair are brought back, subject to customs conditions.
Re importation of a machinery sent abroad for repair attracts IGST on re importation; customs procedures and notifications determine the procedural, documentation and any concessional or conditional treatment on re entry, and the distinction between repairs under a free service agreement and paid repairs affects documentary and concessional eligibility but does not alter the principal tax consequence that IGST is payable at re importation unless specific customs provisions provide otherwise.