Dear Experts,
We are a registered Manufacturers in Karnataka,
In July 2018, We Purchase a Machinery spares by paying IGST, after installation of that spares, it is get damaged within10 days, but actual warranty for that material is 1 year.
We intimated the supplier and he agreed to give replacement, and he told us to scrap that material since it is UnRepairable/Exposed.
Now he is supplying New Material with Another Tax invoice with IGST and giving Credit Note only for the Basic Amount for the rejected material.
My Query is:
a) Is this Procedure is correct ?
b) Is it require to reverse IGST Credit availed from us for the rejected material ? but supplier issuing Credit note only for Basic Amt.
Kindly explain in detail about the procedure to be followed in these type of issues.,
Thanks in advance.
Regards,
Manjunath S