1.1 Moulds and dies owned by the original
equipment manufacturer (OEM) which are
provided to a component manufacturer (the
two not being related persons or distinct
persons) on FOC basis does not constitute a
supply as there is no consideration
involved. Further, since the moulds and
dies are provided on FOC basis by the
OEM to the component manufacturer in the
course or furtherance of his business, there
is no requirement for reversal of input tax
credit availed on such moulds and dies by
the OEM.

1.2 It is further clarified that while calculating
the value of the supply made by the
component manufacturer, the value of
moulds and dies provided by the OEM to
the component manufacturer on FOC basis shall not be added to the value of such
supply because the cost of moulds/dies was
not to be incurred by the component
manufacturer and thus, does not merit
inclusion in the value of supply in terms of
section 15(2)(b) of the Central Goods and
Services Tax Act, 2017 (CGST Act for
short).

1.3 However, if the contract between OEM and
component manufacturer was for supply of
components made by using the moulds/dies
belonging to the component manufacturer,
but the same have been supplied by the
OEM to the component manufacturer on
FOC basis, the amortised cost of such
moulds/dies shall be added to the value of
the components. In such cases, the OEM
will be required to reverse the credit
availed on such moulds/ dies, as the same
will not be considered to be provided by
OEM to the component manufacturer in the
course or furtherance of the former’s
business.

3.1 The requirement of maintaining the books
of accounts at the principal place of
business and additional place(s) of business
is clarified as below:

1. For the purpose of auction of tea,
   coffee, rubber, etc, the principal and the
   auctioneer may declare the warehouses,
   where such goods are stored, as their
   additional place of business. The buyer
   is also required to disclose such
   warehouse as his additional place of
   business if he wants to store the goods
   purchased through auction in such
   warehouses. For the purpose of supply
   of tea through a private treaty, the
   principal and an auctioneer may also
   comply with the said provisions.
2. The principal and the auctioneer for the purpose of auction of tea, coffee,
   rubber etc., or the principal and the
   auctioneer for the purpose of supply of
   tea through a private treaty, are
   required to maintain the books of
   accounts relating to each and every
   place of business in that place itself in
   terms of the first proviso to sub-section
   (1) of section 35 of the CGST Act.
   However, in case difficulties are faced
   in maintaining the books of accounts, it
   is clarified that they may maintain the
   books of accounts relating to the
   additional place(s) of business at their
   principal place of business instead of
   such additional place(s).
3. The principal and the auctioneer for the
   purpose of auction of tea, coffee,
   rubber etc., or the principal and the
   auctioneer for the purpose of supply of
   tea through a private treaty, shall
   intimate their jurisdictional officer in
   writing about the maintenance of books
   of accounts relating to the additional
   place(s) of business at their principal
   place of business.

3.2 It is further clarified that the principal and
the auctioneer for the purpose of auction of
tea, coffee, rubber etc., or the principal and
the auctioneer for the purpose of supply of
tea through a private treaty, shall be eligible
to avail input tax credit subject to the
fulfilment of other provisions of the CGST
Act read with the rules made thereunder.

1. Where goods transit through
   another State while moving from
   one area in a State to another area in
   the same State.
2. Where goods move from a DTA
   unit to a SEZ unit or vice versa
   located in the same State.

1. It may be noted that e-way bill generation is
   not dependent on whether a supply is interState
   or not, but on whether the movement of
   goods is inter-State or not. Therefore, if the
   goods transit through a second State while
   moving from one place in a State to another
   place in the same State, an e-way bill is
   required to be generated.
2. Where goods move from a DTA unit to a
   SEZ unit or vice versa located in the same
   State, there is no requirement to generate an eway
   bill, if the same has been exempted under
   rule 138(14)(d) of the CGST Rules.