GST on Component replacement

[Kaustubh Karandikar]

XYZ (Maharashtra) received an order for repairs of an equipment from PQR(Chennai). The technician of XYZ is taking different components at the place of PQR and depending on the requirement, one of the components might be used in the equipment as replacement during repairing. The other components which are not used / replaced during repairs are taken back to the premises of XYZ. Can XYZ initially send all the components at the premises of PQR without charging GST and to the extent of component, which is replaced, will issue a Tax Invoice to PQR? Or any other correct method to be followed?

AI Summary

XYZ Can Ship Components Without GST, Use Delivery Challan Per CGST Rules for Repairs, Issue Tax Invoice Later. XYZ, a company in Maharashtra, received an order to repair equipment for PQR in Chennai. XYZ plans to send various components to PQR, using only those needed for repairs and returning the rest. The question is whether XYZ can send all components without charging GST and issue a tax invoice only for the replaced part. Experts agree that XYZ can send components without charging GST initially, referencing a Board circular and CGST Rules. They suggest using a delivery challan for such transactions, as the activity is not considered a supply under GST rules until a component is used.