Query on Procedure of warranty replacement of Goods Under GST & Purchase Return Procedure

[NS tawar]

Dear All

My Query as follows -

1 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.

2 On what document our recepient will send back the goods for warranty replacement.

3- whether Purchase return can be done on debit note prescribed under GST. if no pls prescribe procedure of purchase return.

AI Summary

Warranty replacement under GST is not taxable if provided free and warranty cost was included, no ITC reversal required.
Where parts are provided free under warranty and the warranty cost was included in the original transaction value, no GST is chargeable on replacement and the supplier need not reverse input tax credit. Registered purchasers returning goods in the course of business must process returns via regular taxable invoices and pay applicable GST; a debit note is not the prescribed mechanism for purchase returns. For unregistered customers no GST invoice-based return procedure presently exists, and delivery challans may be used for non-supply movements.