Goods received for repair from customer

[SURYAKANT MITHBAVKAR]

We have manufacture pharma machine registered under GST

Our customer has sent some part for repairing under delivery Challon

NOW the repairing work will take place at our vendor place where goods to be delivered by us.

We have sent the same goods on our letter while declaring value for transit purpose along with the customer delivery Challon to that vendor who is doing repairing job.

After repairing job is done that vendor deliver goods on challon with their service invoice which is raise in our name.

After receiving the repaired goods from vendor we will raise our service invoice to customer as agreed and send goods to customer along with their challon copy.

Please advice whether the above procedure under GST is correct or we have to any other precaution under the above procedure.

Please note that we have not issue any challon when the goods send to our vendor for repairing. In short we have not enter any where in our stock.

Secondly sometimes we receive goods for repairing which is done without any charge to customer. In this case we have not raise any invoice to our customer. Is it allow under GST Law if yes under which notification pl advise.

AI Summary

GST on repair services: repair consideration including parts is taxable; warranty replacements without charge are not taxable.
Goods sent to third party repairers must be accompanied by a delivery challan and any prescribed e way documentation; GST is payable on the repair consideration charged by the repairer, including parts. Repairers should invoice the contracting manufacturer/OEM, which may then invoice the customer. Parts provided free under warranty are not subject to GST and do not require reversal of input tax credit, because the original supply value covers warranty replacements.