Warranty Charges received from supplier outside India, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ(India) importing goods from PQR (Japan) which is a parent company. During warranty period, if any defect is found in these goods, PQR is paying the warranty charges to XYZ. Is XYZ liable to pay GST on it? If yes under which provisions?

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my view GST is payable under reverse charge.

[kollengode venkitaraman]

THE AGENT IS NOT IMPORTING ANY SERVICE FROM OUTSIDE INDIA, HE IS REIMBURSED THE COST OF REPLACEMENT AND CHARGES FOR THE SERVICE WARRANTY RENDERED TO THE CUSTOMER. THERE WILL BE NO GST LIABILITY EITHER ON RCM/ FORWARD CHARGE BASIS. BUT WILL HAVE TO REVERSE THE IPC AVAILED ON THE SPARES USED FOR THE SERVICE WARRANTY.