Clarification on availability of ITC in respect of warranty replacement of parts and repair services during warranty period.

Warranty replacement ITC rule: no GST or ITC reversal when replacements are covered by original supply consideration.

The original supply value includes anticipated warranty replacement and repair costs, so where replacement parts or repair services are provided during warranty without separate consideration, no further GST is chargeable and the manufacturer is not required to reverse input tax credit. If additional consideration is charged, GST applies. Distributor actions: free warranty service to customers attracts no GST; invoicing the manufacturer for parts/services is a taxable supply enabling manufacturer ITC; manufacturer-provided parts to distributor without charge do not attract GST or ITC reversal.