warranty claims

[SAKTHIVEL K]

A foreign supplier supplied parts to India. Importer in India raised claim towards quality issue. Is claim received liable to service tax under import of service (RCM)?

AI Summary

Warranty Claim as Price Reduction: No Extra IGST for Indian Importers on Quality Issues Under RCM. A discussion on a forum addressed whether a warranty claim received by an Indian importer from a foreign supplier for quality issues is liable for service tax under the reverse charge mechanism (RCM). One participant explained that the claim is essentially a price reduction and since Integrated Goods and Services Tax (IGST) was already paid on the full value at import, no additional IGST is payable on the claim. The original poster expressed gratitude for this clarification.