CA CMA Syam sundar

  𝐂𝐥𝐚𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐧 𝐆𝐒𝐓 & 𝐈𝐓𝐂 𝐟𝐨𝐫 𝐖𝐚𝐫𝐫𝐚𝐧𝐭𝐲 𝐑𝐞𝐩𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭𝐬 — 𝐂𝐢𝐫𝐜𝐮𝐥𝐚𝐫 𝟏𝟗𝟓/𝟎𝟕/𝟐𝟎𝟐𝟑-𝐆𝐒𝐓 The CBIC had issued a Circular No. 195/07/2023-GST dated 17th July 2023, resolving the long-standing confusion surrounding 𝐰𝐚𝐫𝐫𝐚𝐧𝐭𝐲-𝐛𝐚𝐬𝐞𝐝 𝐫𝐞𝐩𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐫𝐞𝐩𝐚𝐢𝐫 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 under GST. 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬: 1.    𝐍𝐨 𝐆𝐒𝐓 𝐨𝐧 𝐅𝐫𝐞𝐞 𝐑𝐞𝐩𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭𝐬/𝐑𝐞𝐩𝐚𝐢𝐫𝐬 𝐝𝐮𝐫𝐢𝐧𝐠 𝐖𝐚𝐫𝐫𝐚𝐧𝐭𝐲 If a manufacturer provides parts or repair services free of cost during the warranty period, 𝐧𝐨 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐆𝐒𝐓 is payable. GST is already discharged on the original supply, which includes such costs. 𝐍𝐨 𝐑𝐞𝐯𝐞𝐫𝐬𝐚𝐥 𝐨𝐟 𝐈𝐓𝐂- Since these warranty services are part of the original taxable supply, 𝐈𝐓𝐂 𝐧𝐞𝐞𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐫𝐞𝐯𝐞𝐫𝐬𝐞𝐝 by the manufacturer. 2.    𝐃𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐨𝐫𝐬 𝐨𝐧 𝐁𝐞𝐡𝐚𝐥𝐟 𝐨𝐟 𝐌𝐚𝐧𝐮𝐟𝐚?...

GST on Warranty (Bundled with Product): 🔹 If warranty is included in product price → Treated as composite supply 🔹 GST charged on total price of product 🔹 No separate GST on future repair/spare parts (if part of warranty scope) GST on AMC (Sold Separately): 🔸 AMC is a service, taxed @ 18% GST 🔸 Repairs under AMC are taxable, including service charges + parts 🔸 Invoice must clearly mention AMC scope & value 🔸 Reverse charge may apply if services are outsourced to unregistered parties