This circular provides clarifications on certain practical issues under GST to ensure uniform application of the law.

The circular clarifies that moulds and dies owned by OEMs and supplied free of cost to component manufacturers do not constitute a supply where there is no consideration and the parties are not related. In such cases, no GST is payable and no reversal of input tax credit (ITC) is required by the OEM. The value of such moulds and dies is also not to be added to the value of components supplied. However, where the contract envisages supply of components using moulds owned by the component manufacturer, and such moulds are provided free by the OEM, the amortised cost must be added to the value of supply and ITC reversal would be required.

For car servicing involving supply of spare parts and labour, where values are shown separately, goods and services are to be taxed at their respective applicable GST rates.

In the case of auction of tea, coffee, rubber, etc., principals and auctioneers may declare warehouses as additional places of business and may maintain books of accounts either at such places or at the principal place of business after intimation to the jurisdictional officer. Both principals and auctioneers are eligible for ITC, subject to compliance with GST provisions.

The circular further clarifies that railways cannot deliver goods unless the e-way bill is produced at the time of delivery. An e-way bill is required where goods move from one place to another within the same State but transit through another State. However, no e-way bill is required for movement of goods between a DTA unit and a SEZ unit located in the same State, where exempted under the rules