Many times you have faced such situations when you have bought a new product and it spoils in no time. Usually companies give a limited time warranty on new products. A warranty means that the company will repair the product if there is any defect during its validity. The recent decision of the government regarding such matters will help the consumers a lot.
Hence Decided
In fact, there were many such cases where the companies repaired the warranty product and returned it to the customer, but the company collected service tax i.e. GST from the customer. Now companies cannot do this. The government has made it clear in this matter that the companies cannot charge any kind of money from the customers instead of replacing the spare parts to fix the product under warranty.
GST Council has taken this decision
This decision was taken in the recent meeting of the GST Council. The GST Council is the apex body for taking decisions from slabs to rates under the new indirect tax regime. The GST Council clarified in a recent meeting that if companies are replacing product parts free of charge under warranty, they cannot charge GST in such cases. Now the decision of the council has been notified by the Central Board of Indirect Taxes and Customs i.e. CBIC.
CBIC said this
CBIC has said in a recent order that the full cost of replacement spare parts in warranty products is already charged to the customer while selling the original product. Under warranty, companies have to replace spare parts themselves if necessary to repair the concerned product. In such a situation, companies cannot collect money from consumers in the name of GST.
Consumers across the country will be helped
CBIC has said that if a company charges any additional replacement charge or service charge for replacing parts, GST may be applicable. This order of CBIC is expected to be of great help to consumers across the country. At the same time, mistakes made by companies and their service centers will also be curbed.
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