Goods and Services Tax – Started By: – Ramesh C Behera – Dated:- 12-9-2017 Last Replied Date:- 14-9-2017 – Hi,We are a Subsidiary of an MNC . Our Parents company supplies Capital Goods to its customers in India. When there is any breakdown capital goods, supplied to said customers, our Parent company send us the spares free of cost paying duty, GST, Freight and clearing charges with an instruction to supply these parts as a replacement of the spares free of cost to the customer.Please let us know the GST implication on the Free of Cost Supply made by us. – Reply By Rajagopalan Ranganathan – The Reply = Sir, First of all please clarify where your parent company is located? If it is located outside taxable territory (India) then the spares s
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since it was charged on the invoice raised on you. Now you are supplying those material to customets as free supply. This transaction does not have consideration. Hence in my view GST is not applicable. – Reply By Himansu Sekhar – The Reply = Free of cost goods against warranty is not chargeable to gst as in the price charged from the original equipments includes the replacement price and charged gst. If you have taken credit on such item, please reverse the same. – Reply By Ramesh C Behera – The Reply = As explained in my previous post, My Parent company is located in Singapore. What ever spares sent to us is custom duty and IGST Paid. We get the spares ( duty and GST Paid) free of cost and just have to supply these spares to the customer
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