Page 170 - GSTL_18th June 2020_Vol 37_Part 3

384 GST LAW TIMES [ Vol. 37
16. Further, clause (c) of sub-section (1) of Section 10 of the IGST Act,
2017 the place of supply of goods, other than supply of goods imported into, or
exported from India, shall be as under, -
(c) where the supply does not involve movement of goods, whether by
the supplier or the recipient, the place of supply shall be the location of
such goods at the time of the delivery to the recipient;
17. Further as per sub-section (1) of Section 8 of the IGST Act, 2017
8(1) - Subject to the provisions of section 10, supply of goods where the lo-
cation of the supplier and the place of supply of goods are in the same State
or same Union territory shall be treated as intra-State supply :
18. From the above it was observed that the applicant manufactures the
Die as per the requirement and specifications given by the foreign buyer and us-
ing this die applicant manufacture and export the Aluminium and Zinc die Cast-
ings to the foreign buyer by retaining the Die with them till the completion of the
export order or completion of Die life. However, applicant raised the tax invoice
for this die immediately after the manufacture in the name of overseas customer
in foreign currency for receipt of payment though the die not physically moved
out of India to the place outside India. Hence manufacture and supply of die to
the foreign customer does not amounts to export as per Section 2(5) of the IGST
Act, 2017.
19. Further, it is rightly admitted by the applicant that the tax invoice is
raised after the manufacture of the Die in the name of the foreign customer in
foreign currency for receipt of payment. The date of issue of tax invoice by the
applicant is the time of supply of Die to the foreign customer as per Section 12 of
the CGST Act, 2017. Further, on date of issue of tax invoice the die is with the
applicant and it is not moved either by the applicant or by the foreign customer.
Hence the place of supply of goods, other than supply of goods imported into, or
exported from India, shall be the location of such goods at the time of the deliv-
ery to the recipient as per clause (c) of sub-section (1) of Section 10 of the IGST
Act, 2017. Therefore, the place 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 intra-State
transaction as per sub-section (1) of Section 8 of the IGST Act, 2017 and the appli-
cant has to issue the CGST and SGST tax invoice to the foreign customer and lia-
ble 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 in-
struction of the overseas customer, the applicant has to issue intra/inter-State 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 Alumini-
um casting and pressure die Casting component of Aluminium to the applicant.

GST LAW TIMES  18th June 2020  170