Circular 195/07/2023 - Central Tax

Date: July 17, 2023

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Subject

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

Content

Representations have been received from trade and industry that as a common trade practice, the original equipment manufacturers /suppliers offer warranty for the goods / services supplied by them. During the warranty period, replacement goods /services are supplied to customers free of charge and as such no separate consideration is charged and received at the time of replacement. It has been rep…

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