TOOL DEVLOPMENT CHARGES TO BE RECEIVED FROM OVERSEAS

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25 Points Posted on 26 February 2020
We are developing tools for customised products and finished products manufacture from tools exported to same buyer's we requested for tools charges from them if received from them how to accounted in GST is it exports of service tools devlop is now with us till order completed

please reply how to treat in GST if amt rcd in foreign currency as tooling changes
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On 26 February 2020 at 20:54 Report
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Quick Summary
This discussion clarifies the GST treatment for charges received from overseas buyers for tool development. It confirms that when tools are developed in India and then exported to the buyer for manufacturing finished products, the receipt of tooling charges is considered an export of services. The advice references relevant IGST Act sections and GST circulars for accurate accounting.

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GST Practitioner
55067 Points Posted on 27 February 2020
Yes ... it's import of Services.

In term of Section 13(2) of IGST read with 2nd proviso under section 13(3) inserted by amendment Act 2018 it's import of Services.


Note : Can also refer Circular 103/22/2019 GST
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On 27 February 2020 at 00:10
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GST Practitioner
55067 Points Posted on 27 February 2020

Sorry mistype it's Export of Services. 

So plz read Export of Services , insead of Import of Services

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On 27 February 2020 at 00:14
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229 Points Posted on 27 February 2020
Are you bringing firstly tools into India and than export it . or are u receiving only technical services and then export tools to outside India
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On 27 February 2020 at 00:50
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25 Points Posted on 27 February 2020
Tools manufacture by us and other party to manufacture finished products which was exported to same party from tooling amt received
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On 27 February 2020 at 08:40

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