ITC for warranty replacements not reversed when no separate consideration; additional charges for parts or repairs attract GST. Replacement parts or repair services supplied during an original warranty period without separate consideration are included in the value of the original supply, attract no additional GST and do not require reversal of Input Tax Credit. Additional consideration charged for replacements or repairs is taxable. Distributor scenarios are treated according to whether the distributor invoices the manufacturer, uses manufacturer-supplied parts without charge, or adjusts supplies via credit note; repair services charged to the manufacturer are taxable and ITC may be claimed by the manufacturer.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
ITC for warranty replacements not reversed when no separate consideration; additional charges for parts or repairs attract GST.
Replacement parts or repair services supplied during an original warranty period without separate consideration are included in the value of the original supply, attract no additional GST and do not require reversal of Input Tax Credit. Additional consideration charged for replacements or repairs is taxable. Distributor scenarios are treated according to whether the distributor invoices the manufacturer, uses manufacturer-supplied parts without charge, or adjusts supplies via credit note; repair services charged to the manufacturer are taxable and ITC may be claimed by the manufacturer.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
