Material Sold and Return for Repairing

[TANMOY CHAKRABORTY]

Dear Sir,

I have sold goods from Kolkata to Bengaluru and out of the Total goods few goods will be returned by Buyer for repairing. And after repairing the said goods will be re send to the buyer. In this process is there any levy of IGST. Please clarify.

Regards,

Tanmoy

[KASTURI SETHI]

No GST applicable. Use delivery challan for this purpose. Job work includes repair also. See Section 2 (68) of CGST Act which says any treatment or process. Also see Rule 55 of CGST Rules and Section 143 of CGST Act.

[YAGAY and SUN]

We endorse the views of kasturi Sir.

[CSSANJAY MALHOTRA]

GST leviable only when you raise invoice for repair charges and receive consideration or else both experts have shared their views.

[Ganeshan Kalyani]

Yes, the goods can be sent by the buyer to you under delivery challan. And after the repairing job is over you have to send the goods back to the customer under delivery challan.

AI Summary

GST on repair services: movement under a delivery challan is non taxable; tax applies only on invoiced repair consideration.
Inter state movement of sold goods returned for repair and later returned to the buyer does not attract GST when effected under a delivery challan and treated as job work; GST is leviable only on repair services if an invoice is raised and consideration is received, with compliance to delivery challan and job work procedures as referenced in Section 2(68), Rule 55 and Section 143 of the CGST framework.