HSN and SAC for Development Charges.

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Development charges for tool and die manufacturing in casting industry are related to design and development of customer-specific tools. SAC 999799 (miscellaneous services) used with 18% GST is generally acceptable, but correct SAC depends on exact nature of development service.

Gurvinder Singh

Gurvinder Singh (Querist)
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25 September 2019 We have issued Tax invoice for development charges and mentioned miscellaneous SAC code 999799. Standard GST Tax rate paid 18%.

Please suitable advice for development charges how to choose SAC or HSN

with regards

RAJA P M

RAJA P M (Expert)
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25 September 2019 Which based developments by you

Gurvinder Singh

Gurvinder Singh (Querist)
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25 September 2019 Development charges for Tools and Dies manufacturing of Tractor Parts

Gurvinder Singh

Gurvinder Singh (Querist)
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25 September 2019 We are casting manufacturing industry . To manufacture castings we need to develop tool as per the customer specification. Once the tool is developed and after submission of samples approved by customer we used to raise Invoice
The tool retained by us for further manufacture of components .

In the pre GST regime excise duty applicable on cleared of goods .

Please provide your valuable views in the GST regime whether GST is applicable on 18% and issued separate invoice

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