No Need to Reverse ITC by Manufacturer in Respect of Free Replacement Parts or Repair Services
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- By Chetan Kulasri
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- Last Updated on 19 July, 2023
Latest from Taxmann
Circular No. 195/07/2023-GST dated July 17th, 2023
The CBIC has issued circular to clarify that GST is not chargeable on free replacement of parts and/ or repair service during warranty period and it is not required to reverse the input tax credit in respect of the said replacement parts or on repair services provided
However, if any additional consideration is charged by the manufacturer from the customer, either for replacement of any part or for any service, then GST will be payable on such supply with respect to such additional consideration.
Click Here To Read The Full Circular
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