AAR: Cost of ‘Tools’ supplied FOC by OEM/customer not includible in value of ‘parts’ manufactured by applicant

Aug 08,2019

Karnataka AAR holds that the cost of Injection moulds (tools) supplied by the OEM/customer on Free of Cost (FOC) basis, to the applicant, is not required to be added to the value of the parts manufactured & supplied by the applicant and hence the same is not liable to GST; Refers to Circular No. 47/21/2018-GST dated June 08, 2018 wherein CBIC has clarified that Moulds and dies (tools) owned by OEM that are provided to a component manufacturer on FOC basis do not constitut...

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