Moulds And Dies & Export Supplies

[CABIJENDERKUMAR BANSAL]

Hello Sir, The design for Moulds/Dies/Tools was received from Foreign Entity (Customer). The Supplier (In India) makes the Mould/Die/Tool as per specifications in India and charges the same to Customer (Reimbursement + Some profit element). The Mould/Die/Tool never go to foreign entity (Customer) But the supplier suppliers items manufactured using the mould/die/tool. Please explain the taxability of making such mould/die/tool and taking reimbursement from Customer.

AI Summary

GST Implications for Indian Suppliers: Mould Costs & Advance Payments Under Notification 66/2017 CT. Review RBI/FEMA Rules. A discussion on the tax implications under GST for an Indian supplier creating moulds, dies, or tools based on designs from a foreign customer. The supplier manufactures these tools in India, charges the foreign customer, and uses them to produce items for export. The response advises incorporating the cost of these tools into the price of the manufactured items. It suggests treating reimbursements as advance payments for goods and highlights that the date of payment receipt is not considered for the time of supply per notification no. 66/2017 CT. It also recommends reviewing RBI/FEMA regulations for advance receipts in exports.