No Need to Reverse ITC by Manufacturer in Respect of Free Replacement Parts or Repair Services

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  • Last Updated on 19 July, 2023

GST on free warranty replacements or repairs

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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