Since the consideration for any warranty services/replacements is in-built in the price of goods at the time of supply, the supplies during a warranty period should be made free of cost. Accordingly, no GST shall be payable on such supplies. Further, the supplier should be required to transport the goods covered under warranty under cover of a delivery challan
According to Section 7 (1) (a) of CGST Act, 2017 "the expression “supply” includes all forms of supply of goods or services or both such as sale, transfe r, barter, exchange .. ..
Will it not be covered in 'exchange' ..?
if the person who returns the goods as purchase return is a registered person under GST Act he has to return the goods under regular taxable invoice on payment of appropriate gst. According to Section 34 (3) of CGST Act, 2017 "where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed under rule 53 of CGST Rules, 2017. Therefore purchase return cannot be done on debit note.