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

Consensus Reached: Repair and Maintenance of Molds Subject to 18% GST Rate, Not 12% as Initially Argued. A discussion on a forum addresses the Goods and Services Tax (GST) applicable to the repair and maintenance of molds. Initially, there is uncertainty whether the GST rate should be 12% or 18%. One participant argues that repair and maintenance services are not manufacturing and should be taxed at 12%, citing a specific case law. However, other participants, after further consideration, agree that the service is subject to an 18% GST rate. The consensus is that the applicable GST rate for these services is 18%.