Material export for testing / trail run of imported machine

VIKAS (MANAGER) (24 Points)

05 October 2017  

Hello ,

We need one Clarification on Job Work under GST Rule.

Case :  We are Importing one Machine from Germany ( Unregistered Dealer). For Testing / Trial run of this machine, we need to Export some Raw material  on FOC Basis to Machine Supplier. For FEMA compliance we will take GR waiver from our Bank Also.

Question –

  1. Can we take the Input Credit on Purchase of This Raw Material?
  2. Should we need to pay the IGST on Export of this Raw Material ? ( Material Export only for the Testing purpose and it will be return back within One year).
  3. If in Future this material will consume/ Scrap in trial Run and will not return back to India. Then Should we need to reverse original Input credit of this Raw material.
  4. If our Raw material Supplier will  direct dispatch the Raw material to our Machine Supplier at Germany and raise the invoice in our Name as  Bill to Party and mention Machine Supplier name as Ship to Party, In this scenario are we eligible to take the credit of IGST/SGCT –CGST.