Repair services'. carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves “supply of parts' can be classified as a "composite supply of services' under Section 2(30) of CGST Act and taxable @18%
Classification of service— In the instant case, applicant is engaged in the sale of motor vehicle parts and accessories. The Applicant has entered into an agreement with Hyundai Motors India Limited ("HMIL") for providing repair services to the customer on behalf of HMIL during warranty period.
The Applicant receives consideration towards labour charges for providing repair services and also reimbursement of cost of parts replaced, if any, to the customer during the warranty period.
The Applicant in his application sought clarification and Advance Ruling as follows: –
i) Whether repair services carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves supply of parts should be classified as a composite supply of services under Section 2(30) of CGST Act/ Section 2(30) of SGST Act, 2017?
ii) Whether the entire repair services including supply of spares can be classified under S. No 25 in Notification 11/2017 Central Tax (Rate) dated 28th June, 2017 / parallel Notification issued under SGST Act subjected to tax at the rate of 9% under CGST?
Held that— i) Repair services'. carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves “supply of parts' can be classified as a "composite supply of services' under Section 2(30) of CGST/SGST Act, 2017.
ii) The entire repair services including “supply of parts can be classified under the heading having description of Services as “Repair & Maintenance Service which is the ‘Principal/Predominant Supply in a “Warranty Repair Service” as discussed. Accordingly, such“Warranty Repair Service with parts/components” appears to be subjected to tax in terms of S. No. 25 in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017/parallel Notification issued under SGST Act as amended.
Repair services'. carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves “supply of parts' can be classified as a "composite supply of services' under Section 2(30) of CGST Act and taxable @18%
Classification of service— In the instant case, applicant is engaged in the sale of motor vehicle parts and accessories. The Applicant has entered into an agreement with Hyundai Motors India Limited ("HMIL") for providing repair services to the customer on behalf of HMIL during warranty period.
The Applicant receives consideration towards labour charges for providing repair services and also reimbursement of cost of parts replaced, if any, to the customer during the warranty period.
The Applicant in his application sought clarification and Advance Ruling as follows: –
i) Whether repair services carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves supply of parts should be classified as a composite supply of services under Section 2(30) of CGST Act/ Section 2(30) of SGST Act, 2017?
ii) Whether the entire repair services including supply of spares can be classified under S. No 25 in Notification 11/2017 Central Tax (Rate) dated 28th June, 2017 / parallel Notification issued under SGST Act subjected to tax at the rate of 9% under CGST?
Held that— i) Repair services'. carried out by the Applicant under the Dealership Agreement with HMIL, to fulfill the warranty obligation of HMIL which also involves “supply of parts' can be classified as a "composite supply of services' under Section 2(30) of CGST/SGST Act, 2017.
ii) The entire repair services including “supply of parts can be classified under the heading having description of Services as “Repair & Maintenance Service which is the ‘Principal/Predominant Supply in a “Warranty Repair Service” as discussed. Accordingly, such“Warranty Repair Service with parts/components” appears to be subjected to tax in terms of S. No. 25 in Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017/parallel Notification issued under SGST Act as amended.