Free replacement

[MohanLal tiwari]

Dear Panelist,

We have supplied goods during Pre-GST regime which got rejected and needs to be replaced free of charge before lifting back the rejected goods.The customer needs Invoice copy for free replacement to issue way bill.

[ANITA BHADRA]

Dear Sir

If the amount of invoice exceeds ₹ 200 only then it is mandatory to prepare ‘Tax invoice’..section 31 of the. CGST Act, 2017.

And as far as way bill is concerned , Way bill need to issue for value for more than ₹ 5000

[CSSANJAY MALHOTRA]

Delivery challan is required for Free Replacement as the same is not covered under SUPPLY in GST.

[Himansu Sekhar]

The goods can be replaced free of cost without paying the gst. Even there is no need to reverse the credit on the free supply.it has been clarified in the FAQ. This also applicable to the pre gst supplies.

[KASTURI SETHI]

Dear Querist,

"Invoice" and "Free replacement" cannot go simultaneously in this situation. As suggested by Sh.CS Sanjay Malhotra, Sir, delivery challan will serve the purpose. Delivery challan can be correlated with the invoice issued initially.

AI Summary

Replacing Pre-GST Rejected Goods: Use Delivery Challan for Free Replacements, No GST or Credit Reversal Needed A user inquired about the procedure for replacing goods supplied before the GST regime, which were rejected and need to be replaced free of charge. The customer requires an invoice for issuing a waybill. Responses clarified that if the invoice exceeds 200, a tax invoice is mandatory, and a waybill is needed for values over 5000. It was advised that a delivery challan should be used for free replacements, as they are not considered a supply under GST. Additionally, it was noted that GST is not applicable on free replacements, and credit reversal is unnecessary.