GST to Overseas Customer

[DIPAK BIJAWE]

Sir,

We are rubber to Metal components manufacturing industry . To manufacture parts we need to develop tool as per the sister company(overseas Customer- UK) specification. Once the tool is developed and after submission of samples approved by customer we used to raise Invoice on overseas customer .

The tool retained by us for further manufacture of components .

Is IGST/GST applicable on the invoice for the tool cost recovery from overseas customer.

Please provide your valuable views in the GST regime whether GST is applicable on Invoice on overseas customer for the tooling cost recovery for which the tool retained by us for further manufacturing of components

Regards

Dipak Bijawe

AI Summary

GST at 18% Applies to Tool Cost Recovery Invoices for Overseas Customers, per Advance Ruling Case Law. A manufacturing industry inquires about the applicability of GST on invoices for tool cost recovery from an overseas customer in the UK. The tools are developed as per the customer's specifications and retained for further manufacturing. A respondent advises that IGST at 18% is applicable, referencing a case law from the Authority for Advance Ruling in Maharashtra, which supports this view.