GST: How a recent CBIC clarification makes life easy for businesses

This clarification would act as a guide for this vexed issue and also aid in bringing uniformity in the tax position adopted by various industry players

Taxability of moulds and dies

Issue 

There was a general apprehension in the automobile sector (in specific) on the GST implications of moulds and dies transferred free of cost by a vehicle manufacturer (OEM) to an auto component manufacturer. 

To recap, under the erstwhile excise law, there was an explicit requirement of adding the amortized value of such moulds and dies, jigs and fixtures to the value of the component manufactured by the component manufacturer for payment of excise duty. Unlike the Central Excise Law, the GST law does not specifically provide for such treatment.

There were divergent views in