RCM Liability on Repair Cost of Lab Instrument outside India, Goods and Services Tax - GST

[Manjunath S]

Dear Experts,

We imorted one Crush Testing instrument from Sweden in 2017, now the same instrutrument is not working and sent it for repair to sweden.

Now instrument is repaired & returned from supplier, Few spares are replaced, and supplier as raised two invoice for both Spares & Service separately.

We have paid Custom duty on Spares replaced.

My Query is

a) Is it required to pay IGST under RCM for Repair Cost? which is repaired outside india.

Kindly guide us with appropriate sections/notifications, If any

Thanks in advance.

Posts / Replies

[YAGAY andSUN]

If you had paid Customs Duty along with IGST on the entire cost including service charges and the cost of material used for Repair then in our view no need to pay it again.

[Manjunath S]

Dear Sir,

We have paid Customs duty with IGST only for Spares used and not on Service/Repair charges.

[KASTURI SETHI]

I support the views of M/s.Yagay and Sun, Sirs. Customs duty and IGST have to be paid for repair charges also.