GST on repair of Goods

[Kaustubh Karandikar]

XYZ carrying out 'Repairs and Maintenance of Moulds' for its customers and charging repairing charges for the same. W.e.f. 01.10.2019, he is required to charge 18% or 12%

[KASTURI SETHI]

Repair and maintenance both do not amount to manufacture. These do not change the character of the goods. It is a service. Rate of tax is 12 %. Here is a case law in which it has been held that repair and maintenance do not amount to manufacture.

IN RE : ANOD PLASMA SPRAY LTD. 2007 (5) S.T.R. 74 (Commr. Appl.) = 2006 (8) TMI 462 - COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE (APPEAL), KANPUR

[Himansu Sekhar]

It is chargeable to gst at 18%. It is a service.

[Atul Rathod]

Would go for 18%.

[KASTURI SETHI]

Re-examined. I agree with both experts. GST rate is 18%.

AI Summary

GST on repair and maintenance treated as taxable service with standard higher rate applied under recent practice. Repair and maintenance of moulds constitute a service rather than manufacture because they do not change the character of the goods; forum contributors agreed that such repair and maintenance are taxable as a service and attract the higher GST rate applied to general services.