Tool amortisation., Central Excise, Central Excise

[Sanjeev Goski]

We have sold mould to our customer without charging excise duty becase that mould we have kept with us to supply components. We availed excise duty on mould purchased from our vendor. Now before completion of project we want to return the mould to the customer.

1) Do we need to reverse cgst credit for balance life of the mould as we have taken excise duty credit on that mould or can we charge cgst to our customer by invoice. can customer get the credit of cgst. We are not job worker. We are not going to charge anything while returning the mould to the customer as he is the owner of the same. Pls. reply. [email protected] - 7709482039

Posts / Replies

[YAGAY andSUN]

Since on the above mentioned moulds you had availed CENVAT credit in C.E. Regime, therefore in our view, while supplying it back to you customer, then, you need to reverse the ITC propotionately. Further, in GST Regime there is no need to pay GST on the Tool Amortisation as it is settled Legal Position.