Export and Import Implications for Repair Services between

[Sudhir M]

ABC India will physically export goods to ABC Korea (related party) for repair purposes. ABC Korea will perform the repair and upgrade the software. After the repair, ABC India will re-import the goods.

What are the implications regarding export and import, including the time frame? Additionally, what are the GST and customs implications in this scenario

AI Summary

Temporary export for repair permits duty relief on re-importation if procedural conditions and documentation are satisfied.
Temporary export of goods for repair and software upgrade must be declared as such and supported by export and repair documentation; the repair cost must be separately identified. Re-importation may qualify for customs duty relief if the same goods are identifiable, procedural formalities (including GR/EDF waivers where no foreign remittance occurs) are complied with, and re-import is within the prescribed period under applicable customs guidance. GST treatment depends on whether the transaction is a supply; exporters may seek zero-rating and input tax credit subject to evidentiary and invoice separation requirements.