The Union Finance Minister Nirmala Sitaraman chaired the 50th meeting of the GST Council on 11th July 2023 at Vigyan Bhawan in New Delhi including Revenue Secretary, Sanjay Malhotra, CBIC chairman, Vivek Johri.
According to the press release of the GST Council, a circular will be issued to provide clarity on various issues pertaining to the GST liability as well as the liability to reverse input tax credit in cases involving warranty replacement of parts and repair services during warranty period without any consideration from the customers.
It was also clarified inter alia that no GST is chargeable by the manufacturer on such replacement of parts and/ or repair service and also, no reversal of input tax credit is required to be made by the manufacturer.
The council made it apparent that the manufacturer cannot charge GST on replacement parts or service repairs. As a result, the manufacturer will not require to make a reverse ITC on the same.
The Finance minister also clarified the refund related issues under the Goods and Service tax. Such as Consequent to amendment in rule 36(4) of CGST Rules 2017 with effect from 01.01.2022, refund of accumulated Input Tax Credit (ITC) under Section 54(3) of CGST Act, 2017 for a tax period to be restricted to ITC on inward supplies reflected in FORM GSTR-2B of the said tax period or any previous tax period.
Read More: GST Council Clarifies Refund Issues
The GST Council has Slashed GST on Four Items Uncooked, unfried snacks reduced from 18% to 5% ; ish soluble paste reduced from 18% to 5%; Imitation Zari threads reduced from 12% to 5% and LD Slag reduced from 18% to 5%.
Read More: 50th GST Council Meeting: Key Highlights
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