TaxTMI 
TaxTMI 
Dear Sir / Madam
Tool is developed in India to build mould and the moulds are supplied to foreign customer for next 5 to 10 years. if the supplier wants to recover the tooling cost does it attract GST? please note it is cost-to-cost reimbursement.
Recovery of tooling cost
09 Aug 2022 
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Tooling cost reimbursement: GST treatment depends on whether payment is a taxable supply, transfer of ownership, export, or in India use.
Taxability of tooling cost recovery depends on whether the payment is a supply or mere reimbursement, determined by transfer of ownership or possession, physical export of the tool, and the purpose or location of its use; clarifications on ownership transfer, export status, and in-India use are requested to assess GST applicability. (AI Summary)
Taxability of tooling cost recovery depends on whether the payment is a supply or mere reimbursement, determined by transfer of ownership or possession, physical export of the tool, and the purpose or location of its use; clarifications on ownership transfer, export status, and in-India use are requested to assess GST applicability. (AI Summary)