TaxTMI 
TaxTMI 
Sir,
We are car dealer selling cars . we are getting Warranty Claims by way of Credit Notes and i.e. ₹ 1000 + 18% as IGST .
Whether we have to issue Invoice with IGST and Pay IGST Please Clarify
ITC of Credit Notes under GST against warranty
22 Mar 2019 
4 Replies 
4053 Views Asked by
Input tax credit on warranty replacements preserved; no GST or ITC reversal required where parts are supplied without consideration.
Where parts supplied under warranty are provided without consideration, those supplies are not taxable and no GST is payable; the original sale value is treated as including warranty replacement charges, so the provider of warranty replacements need not reverse input tax credit on replaced parts. Suppliers who paid higher input tax on inputs can still claim that credit even if the final product is taxed at a lower rate. Issuing parts under a delivery challan for warranty work is consistent with departmental practice supporting non-reversal of ITC. (AI Summary)
Where parts supplied under warranty are provided without consideration, those supplies are not taxable and no GST is payable; the original sale value is treated as including warranty replacement charges, so the provider of warranty replacements need not reverse input tax credit on replaced parts. Suppliers who paid higher input tax on inputs can still claim that credit even if the final product is taxed at a lower rate. Issuing parts under a delivery challan for warranty work is consistent with departmental practice supporting non-reversal of ITC. (AI Summary)