We have sold mould to our customer without charging excise duty becase that mould we have kept with us to supply components. We availed excise duty on mould purchased from our vendor. Now before completion of project we want to return the mould to the customer.
1) Do we need to reverse cgst credit for balance life of the mould as we have taken excise duty credit on that mould or can we charge cgst to our customer by invoice. can customer get the credit of cgst. We are not job worker. We are not going to charge anything while returning the mould to the customer as he is the owner of the same. Pls. reply. [email protected] - 7709482039
Company Must Reverse Proportional ITC on Mould Return, No GST Required on Tool Amortization Under GST Regime A query was raised regarding the return of a mould sold without charging excise duty, as the mould was retained for component supply. The company had availed excise duty credit on the mould purchase. The question was whether to reverse the CGST credit for the mould's remaining life or charge CGST to the customer upon return. The response clarified that since CENVAT credit was availed under the Central Excise regime, the input tax credit (ITC) should be reversed proportionately when returning the mould. Additionally, under the GST regime, there is no requirement to pay GST on tool amortization. (AI Summary)
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