TaxTMI 
TaxTMI 
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?
GST on Component replacement
24 Oct 2021 
5 Replies 
2027 Views Asked by
No supply - sending repair components is not taxable until a component is incorporated and invoiced.
Dispatching components to a customer for repair, without charging GST, is not a taxable supply while no consideration has arisen; only when a component is actually incorporated into the equipment should a tax invoice be issued for that replaced part. Delivery challans should document outward movement and return of unused components, and the transaction may be operated on a sale-on-approval basis so that invoicing is limited to accepted components. (AI Summary)
Dispatching components to a customer for repair, without charging GST, is not a taxable supply while no consideration has arisen; only when a component is actually incorporated into the equipment should a tax invoice be issued for that replaced part. Delivery challans should document outward movement and return of unused components, and the transaction may be operated on a sale-on-approval basis so that invoicing is limited to accepted components. (AI Summary)