RCM Liability on Repair Cost of Lab Instrument outside India

[Manjunath S]

Dear Experts,

We imorted one Crush Testing instrument from Sweden in 2017, now the same instrutrument is not working and sent it for repair to sweden.

Now instrument is repaired & returned from supplier, Few spares are replaced, and supplier as raised two invoice for both Spares & Service separately.

We have paid Custom duty on Spares replaced.

My Query is

a) Is it required to pay IGST under RCM for Repair Cost? which is repaired outside india.

Kindly guide us with appropriate sections/notifications, If any

Thanks in advance.

AI Summary

Clarification Sought on IGST Applicability for Overseas Instrument Repairs Under Reverse Charge Mechanism, Parts vs. Service Charges A company imported a testing instrument from Sweden in 2017, which later required repairs and was sent back to Sweden. The supplier repaired the instrument, replaced some parts, and issued separate invoices for parts and services. The company paid customs duty on the replaced parts but sought clarification on whether Integrated Goods and Services Tax (IGST) under Reverse Charge Mechanism (RCM) is applicable to the repair costs incurred outside India. Responses indicated that if IGST was already paid on the entire cost, including service charges, it need not be paid again. However, if only paid on parts, IGST on repair charges might still be required.