2020 (5) TMI 604

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....astings. The applicant first manufactures the Steel Die as per the requirement and specifications given by the foreign customer. After seeking the approval from the foreign customer, the applicant uses Steel Dies for making Aluminium and Zinc Die Castings. These manufactured Aluminium and Zinc Die Castings are exported to the overseas customer along with sub-assemblies and other components against the order. However, the applicant retains the Steel Die till the completion of the export order or completion of the life of the die. 3. The applicant has raised the tax invoice for the steel die in the name of overseas customer in foreign currency for receipt of payment though the die not physically exported to the foreign customer. However, after the completion of the export order or completion of the life of the die, the applicant either export the dies to the overseas customer or scrap the die at the applicant's end as per the instructions of the customer. 6. In view of the above, the applicant has sought an advance ruling in respect of the following issues: a) Whether the applicant raise the tax invoice addressed to the foreign buyer and delivery to applicant works....

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....articularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 12. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by Sri. S. Raju, Manager Accounts and the authorised representative during the personal hearing. We also considered the issues involved, on which advance ruling is sought by the applicant and relevant facts of the case. 13. On verification of the nature of the activity carried out by the applicant, it was observed that the applicant is a manufacturer and exporter of Aluminium and Zinc die Castings to the overseas customer. The applicant first manufactures the die mould as per the requirements and specification given by the customer. This die retained by the applicant and used for the manufacture and supply of Aluminium and Zinc die Castings. The applicant raises the tax invoice for this die in the name of overseas customer in foreign currency for receipt of payment though the die is not physically exported to the customer. However, after the completion of the export order or completion of ....

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....the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount. Explanation 1. For the purposes of clauses (a) and (b), "supply" shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment. Explanation 2.-For the purposes of clause (b), "the date on which the supplier receives the payment" shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier (3) In case of supplies in respect of which tax is paid or liable to be paid on reverse charge basis, the time of supply shall be the earliest of the following dates, namely: - (a) the date of the receipt of goods; or (b) the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (c) the date immediately following thirty days from the date of issue of invoice or any other document, by whatever name called, in lieu thereof by the supplier: Provided....

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....e of supply of die in this case is the location of the applicant. 20. In view of the above, the location of the supplier of die and place of supply of the die to the foreign customer are one and the same i.e., location of the applicant and such being the case said transaction shall be treated as infra-State transaction as per sub section (1) of section 8 of the IGST Act 2017and the applicant has to issue the CGST and SGST tax invoice to the foreign customer and liable to collect and pay the CGST and SGST tax. Further if the said steel die is scrapped at applicant's end without moving out of the country, as per the instruction of the overseas customer, the applicant has to issue intra/interstate tax invoice depending upon the nature of the transaction and collect and pay the applicable tax as per the provisions of the GST Act 2017, while supplying the die scrap. 21. Similarly, applicant is an importer of the Aluminium casting and pressure die Casting component of Aluminium from Thailand. The Thailand supplier first manufacture die as per the requirement and specifications given by the applicant, retained with them and used for the manufacture of the Aluminium casting and p....