Spares Under Warranty

[Vivek anandhan]

Dear Experts

We are manufacturing of capital equipment, Our supply of product terms covers 1 year warranty. Warranty cost included in the selling cost. Now my question is whether we can supply spares to the main capital equipment without payment of GST under warranty.

Regards

Vivekanandhan

[KASTURI SETHI]

It would be treated as mixed supply and not composite supply. Both would be charged GST separately.

AI Summary

Mixed supply: warranty spares included in sale attract separate GST treatment with each component charged individually. Provision of spare parts supplied under a contractual warranty (with warranty cost included in the sale price) is to be characterised as a mixed supply, not a composite supply, and each component must be charged GST separately.