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The cost of the tool/s supplied by the OEM on FOC basis to the applicant is not required to be added to the value of the parts supplied by the Applicant and hence the said value is not liable for GST.

Shanti Prime Publication Pvt. Ltd.

Taxability — The Applicant is involved in the manufacture and sale of plastic moulds, press tools, Jigs/ Fixtures / Gauges, Injection moulded parts and Design services, as per the specific orders & requirements of their customers. The Tool is either manufactured by them or supplied by the customers free of cost, for production of ‘parts’, on returnable basis. The Authority Rules; the cost of the tool/s supplied by the OEM on FOC basis to the Applicant is not required to be added to the value of the parts supplied by the Applicant and hence the said value is not liable for GST. — Toolcomp Systems Private Limited, In Re… [2019] 14 TAXLOK.COM 057 (AAR-Karnataka)