sending spare parts to service engineer for AMC, Goods and Services Tax - GST

[ajay chharia]

Dear Sir,

A company manufacture printing machines in UP and sell the same on pan India basis with a warranty of 1 to 2 years. Also provide after sales service either on CMC/AMC basis or as demanded by printer (machine owner) .The Company had stationed service engineer in different major cities of India. Company is registered under GST in UP state only.

Following are the quarries:

1. Can company send spares to its engineer to maintain an inventory for providing services to its customers on receiving any complaint from customer?

2. Can engineer carry spare with him to outstation when he is visiting on a complaint to outstation customer?

3. Can service engineer maintain a buffer stock of spares with him for attending the complaint and return back all spares to company within six months of receiving the same and show it as goods received on approval basis ?

4. What documents should company be raise and maintain under GST for above activities?

5. Any other method by following the same, company can provide after sale service to its customer , without getting registration in different states.

I will be thankful for your reply.

Dear Sir,

A company manufacture printing machines in UP and sell the same on pan India basis with a warranty of 1 to 2 years. Also provide after sales service either on CMC/AMC basis or as demanded by printer (machine owner) .The Company had stationed service engineer in different major cities of India. Company is registered under GST in UP state only.

Following are the quarries:

1. Can company send spares to its engineer to maintain an inventory for providing services to its customers on receiving any complaint from customer?

2. Can engineer carry spare with him to outstation when he is visiting on a complaint to outstation customer?

3. Can service engineer maintain a buffer stock of spares with him for attending the complaint and return back all spares to company within six months of receiving the same and show it as goods received on approval basis ?

4. What documents should company be raise and maintain under GST for above activities?

5. Any other method by following the same, company can provide after sale service to its customer, without getting registration in different states.

I will be thankful for your reply.

Dear Sir,

A company manufacture printing machines in UP and sell the same on pan India basis with a warranty of 1 to 2 years. Also provide after sales service either on CMC/AMC basis or as demanded by printer (machine owner) .The Company had stationed service engineer in different major cities of India. Company is registered under GST in UP state only.

Following are the quarries:

1. Can company send spares to its engineer to maintain an inventory for providing services to its customers on receiving any complaint from customer?

2. Can engineer carry spare with him to outstation when he is visiting on a complaint to outstation customer?

3. Can service engineer maintain a buffer stock of spares with him for attending the complaint and return back all spares to company within six months of receiving the same and show it as goods received on approval basis ?

4. What documents should company be raise and maintain under GST for above activities?

5. Any other method by following the same, company can provide after sale service to its customer, without getting registration in different states.

I will be thankful for your reply.

Posts / Replies

[KASTURI SETHI]

Query-wise answer is as under:-

1. Yes. Through delivery challan. See Rule 55 of CGST Rules, 2017. Delivery challan is to be addressed to the buyer. If sold, invoice can be issued by the service engineer (duly authorised by the company.)

2. Yes. Delivery challan should be with him.

3. Get warehouse or godown registered for this purpose. If buffer stock is to be kept in U.P. then additional place of business can be declared. If outside UP, registration of the godown or warehouse is compulsory. See the definition of place of business under Section 2(85) of CGST Act. It includes godown or warehouse.

4. See Rule 58 of CGST Rules, 2017.

5. As per above only.