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Nilesh Vekariya   03 October 2017

SUPPLY OF GOODS UNDER WARRANTY/AFTER SALES SERVICE

Hello Expert,

Plz quide us for the following matter:

If I am a manufacturer and I m supplying goods to customer which also covered under one year warranty period.and during warranty period any services or consumables require then I m liable to provide such services and replace such parts without any cost.bcoz I have already charged consideration at the time of sales and it is specifically mentioned in sales invoices that such goods are covered a one year warranty.

in the above issue, How can I supply such parts to our customer?


 14 Replies

Abisheik

Abisheik (Articled Clerk)     03 October 2017

Please be more clear.

Are you asking whether you have to charge GST on the free supplies made under warranty or something else?

Nilesh Vekariya

Nilesh Vekariya   03 October 2017

I m asking about free supplies made under warranty
g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

nothing to do just mention in invoice it is supplied against original product and value is zero
1 Like
g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

because In old invoice you already mentioned about your warranty
Abisheik

Abisheik (Articled Clerk)     03 October 2017

Okay,free supplies are to be made if the goods are covered under warranty, I dont understand in what aspects you have doubts about in this specific case!

Nilesh Vekariya

Nilesh Vekariya   03 October 2017

Thx g mahesh Mundra,

you mean to say I have to raise invoice having zero values.bt what about GST if such parts are manufactured by us?
g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

nothing will affect GST because you replaced the old parts and old one you got back
g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

nothing will affect GST because you replaced the old parts and old one you got back
Abisheik

Abisheik (Articled Clerk)     03 October 2017

In this case, you shall issue a delivery challan (at actual cost) and reverse the ITC taken on the parts given as free supplies under warranty.

g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

no need to reverse ITC because in his bill he clearly mentioned about warranty so no need to reverse and also he changed the defective one only and he got back his old one
Nilesh Vekariya

Nilesh Vekariya   03 October 2017

Thx to both. I think your suggestions are valuable for me. again thanks
Sujit Saha

Sujit Saha   03 October 2017

I think it may be replaced by credit note.
g mahesh Mundra

g mahesh Mundra (Business and tax consultant)     03 October 2017

no need
Ashit Sharma

Ashit Sharma   30 June 2018

surprised, should not Sec.no/ rule be there.

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