Warranty Charges

[Kaustubh Karandikar]

XYZ(India) importing goods from PQR (Japan) which is a parent company. XYZ re-selling these goods to customers in India. During warranty period, if any defect found in these goods, XYZ giving free replacement to the customers in India and the amount for the same is recovered from PQR as reimbursement of warranty charges. Is XYZ required to pay GST on it? If yes under which provisions?

[DR.MARIAPPAN GOVINDARAJAN]

Already answered in 114331 ID.

AI Summary

GST on warranty reimbursements questioned where supplier is reimbursed by parent company; response directs to prior ruling. Query asks whether an Indian reseller must pay GST on amounts reimbursed by its overseas parent as warranty charges when the reseller supplies free replacement goods; the only reply refers the enquirer to a prior discussion (114331 ID) and provides no substantive answer.