Supply of Goods or service

[Kaustubh Karandikar]

XYZ is receiving moulds for trials from PQR(Customer). XYZ is making bottles from these moulds on trial run basis and sending the said bottles to PQR. XYZ is charging trial run charges to PQR. Will this transaction will be treated as supply of goods or supply of service?

AI Summary

XYZ's Trial Bottle Production Using PQR Moulds Classified as Supply of Service Under GST Regulations XYZ receives moulds from PQR for trial purposes and uses them to produce bottles, which are then sent back to PQR. XYZ charges PQR for the trial run. The query is whether this transaction should be classified as a supply of goods or a supply of service under GST regulations. The response provided by Kasturi Sethi clarifies that this transaction is considered a supply of service, referencing a ruling by the Authority for Advance Rulings which states that the Act does not differentiate between a trial run and a service.