Question

XYZ (Manufacturer from India) received back the goods from PQR (U.K.) after repairs under the cover of a Bill of Entry for the repaired goods and XYZ had taken credit of the IGST charged in the Bill of Entry. PQR had carried out the repairs outside India i.e. in U.K. PQR had issued a separate Invoice to XYZ towards repair charges in foreign currency. Is XYZ liable to pay GST on it under reverse charge?

Answer

We are understood your question is as follows
XYZ exported goods to PQR, the goods were defective so PQR get it repaired and after that returned them that to XYZ.

Since the goods are imported back on payment of tax therefore XYZ have rightly availed ITC of the IGST amount. The goods are repaired outside india and PQR raised a invoice for repairing so far as the invoice of repairing is concerned the location of supplier (PQR) is out of india and the place of supply (where the goods are repair) is out of india therefore no GST will be charged on it. (Reply dt.02/02/2019)