New guidelines clarify GST rules for warranty cases, no GST on replaced goods. Extended warranty seen as separate service.

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Full Text of the Document

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....The circular provides clarification on GST liability and input tax credit (ITC) availability for warranty and extended warranty cases. It addresses issues like the replacement of goods or parts under warranty, distributor's role in replacement, and nature of extended warranty supply. It clarifies that GST is not payable on goods replenished under warranty and distinguishes extended warranty as a separate service. The circular emphasizes uniformity in implementing CGST Act provisions. Trade notices are advised for dissemination, and feedback on implementation challenges is welcomed.....