watch_later 24/10/17

Whether GST should  be levied / paid on spares replaced to customer without charge, as  part of warranty obligation  AND

whether input credit  can be taken on such spares by our customers?


1 Response | Latest response: 24/10/17 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 24/10/17

There has to be a consideration to charge GST. Since there is no consideration and spares are for free of cost. GST is not to be charged.

However you need to charge GST on warranty amount if recovered from customer.

Again you have to refer to input credit provisions, if goods are supplied for free then you will have to reverse input availed on such goods, but you need not to reverse input if warranty charges were recovered from customer, may be even a single rupee.

Your customer can avail GST input credit if you have charged GST.


Sign up to discuss taxation, accounting and finance topics with experts from all over India.

Join Discussion