Goods and Services Tax – Started By: – NS tawar – Dated:- 6-9-2017 Last Replied Date:- 8-7-2018 – Dear AllMy Query as follows -1 What is the procedure to be followed for warrantyreplacement of goods. whether we should issue FOC tax Invoce or we may send goods on delivery challan. 2 On what document our recepient will send back the goods for warranty replacement.3- whether Purchase return can be done on debit note prescribed under GST. if no pls prescribe procedure of purchase return. – Reply By Rajagopalan Ranganathan – The Reply = Sir, 1. Under GAT Act, levy of tax is on supply. According to Section 7 (1) (a) of CGST Act, 2017 the expression supply includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. Since exchange of goods is also included in the definition of supply, supply of a new component or part in
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o is not procuring such supply in the course of or furtherance of business no procedure is available at present. Since the individual will be unregistered he cannot return the goods under the cover of taxable invoice. – Reply By MARIAPPAN GOVINDARAJAN – The Reply = The reply given by Shri Ranganathan is superb. – Reply By KASTURI SETHI – The Reply = Yes, Sir. Sh.Ranganathan Sir has worked hard. He has saved time of so many visitors of this site. Such comprehensive reply is really appreciable. – Reply By Himansu Sekhar – The Reply = 1. The warranty replacement is not subject to gst as no consideration is involved. Board has clarified it. No need to reverse the credit also. I think delivery challah is sufficient or a separate set of invoice can be issued.2. The recipient need not issue any invoice as it is not a supply , delivery challah is sufficient – Reply By KASTURI SETHI – The Reply = Under the warranty period , goods are repaired and not exchanged. The product is exchanged only und
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lity on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit? Answer: As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced. – Reply By Himansu Sekhar – The Reply = I am working on q. 3. I am also puzzled with this question since last seven days. If the invoice is issued, it will increase the turnover. Also sec. Does not provide for a debit note. The credit note procedure given which has to be issued by supplier. I shall revert back. – Reply By Ganeshan Kalyani – The Reply = The sale is to an unregistered customer. Delivery challan is a document mentioned to be used for the purpose
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