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TMI BlogFree warranty replacements.X X X X Extracts X X X X X X X X Extracts X X X X ..... Free warranty replacements. X X X X Extracts X X X X X X X X Extracts X X X X ..... services or replacement of defective parts includes in initial sale of product? 3.But under Section 31(3)d, the receipt voucher has to be issued separately if payment is received for future supply of goods or services? 4.Suppose, the consideration for supply of warranty services is included in the initial sale of the product but in future, situation is not raised for any supply of warranty servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces.In such a case, what we have to do? Kindly enlighten me on above issues. Reply By Ganeshan Kalyani: The Reply: Goods and services are supplied free during warranty period if they are included in the agreement or arrangement. Otherwise, goods is supplied free but service charge is charged. In a scenario where both goods and services are given free (warranty charges are including in the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price) then there is no GST on the supply part. And input tax credit is also not required to be reversed. Reply By praveenkumar mekalacheruvu: The Reply: Sir, suppose the consideration is included in the initial sale of the product and on the same the GST amount is discharged.But , in future, the supplier not provided any warranty services then how to deal with same? Reply By Mahadev R: The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply: I agree with the view of expert. Even if warranty not supplied, there is no impact under GST. There would be cases wherein warranty charges incurred would be more than estimated and vice versa. This cannot change the GST impact when original arrangement for sale is inclusive of free warranty supplies Reply By Ganeshan Kalyani: The Reply: Warranty is a compensation to any damage that happen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s after sales has happened. It is probable. Hence, even if there is no occurence of such occasion, the GST already paid on original sales which is inclusive of warranty charges does not have any affect. The tax paid stands paid. No reversal or any other adjustment is required. Reply By praveenkumar mekalacheruvu: The Reply: Sir, can anyone discuss on point 3? i.e; if any payment received in adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance, we have to issue a receipt voucher under section 31(3)d. But in present case we are included in the tax invoice only and there is any provision for supporting the same under the act? X X X X Extracts X X X X X X X X Extracts X X X X
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