Query on Procedure of warranty replacement of Goods Under GST & Purchase Return Procedure
Query (Issue) Started By: – NS tawar Dated:- 6-9-2017 Last Reply Date:- 8-7-2018 Goods and Services Tax – GST
Got 12 Replies
GST
Dear All
\nMy Query as follows –
\n1 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.
\n2 On what document our recepient will send back the goods for warranty replacement.
\n3- whether Purchase return can be done on debit note prescribed under GST. if no pls prescribe procedure of purchase return.
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\n1. 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<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n prescribed under rule 53 of CGST Rules, 2017. Therefore purchase return cannot be done on debit note. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n purchase Return = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Query on Procedure of warranty replacement of Goods Under GST & Purchase Return Procedure Query (Issue) Started By: – NS tawar Dated:- 6-9-2017 Last Reply Date:- 8-7-2018 Goods and Services Tax – GSTGot 12 RepliesGSTDear All My Query as follows – 1 What is the procedure to be followed for warrantyreplacement of goods. whether we … Continue reading “Query on Procedure of warranty replacement of Goods Under GST & Purchase Return Procedure”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7621","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7621"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7621\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nIf the person who make purchase return is an individual or who 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.
\nReply By MARIAPPAN GOVINDARAJAN:
\nThe Reply:
\nThe reply given by Shri Ranganathan is superb.
\nReply By KASTURI SETHI:
\nThe Reply:
\nYes, Sir. Sh.Ranganathan Sir has worked hard. He has saved time of so many visitors of this site. Such comprehensive reply is really appreciable.
\nReply By Himansu Sekhar:
\nThe Reply:
\n1. 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.
\n2. The recipient need not issue any invoice as it is not a supply , delivery <\/p>\n
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\nReply By Himansu Sekhar:
\nThe Reply:
\nFAQ released on it\/its by Board. Hope it will solve your query.
\nQuestion 20: What would be the tax liability 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?
\nAnswer: 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.
\nReply By Himansu Sekhar:
\nThe Reply:
\nI 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 rev<\/p>\n
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