Sections extracted
- Section 168 (1)
GST circular working note
Circular 216/10/2024-GST: Clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023
Source-led decode of CBIC Circular 216/10/2024-GST with the actual provisions, rules, forms and official PDF trail.
Reviewed by CA Nikhil Gupta · Updated 5 October 2026
Filing identity
Circular number
216/10/2024-GST
Date
2024-06-26
CBIC record
1003205
PDF source
official text PDF; 5 page(s)
Form in 2 minutes
Circular 216/10/2024-GST deals with clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023. Read it as a input tax credit analysis: map the invoice, recipient, supplier compliance trail, goods or services use and the exact condition in section 16 or the relevant rule. The circular is binding administrative clarification under the GST framework only to the extent of the issue it answers; the Act, Rules, notifications and event-date version still control the final legal result.
Working point: On the issue of clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023, the advisory file should show the transaction facts beside each statutory condition; the circular helps resolve the identified doubt, not replace the primary ITC test.
Bare law, rules and notifications
Rules extracted
No CGST Rule number was expressly extracted from Circular 216/10/2024-GST.
Forms extracted
No GST form was expressly extracted from Circular 216/10/2024-GST.
Notifications and linked circulars
- Circular No. 195/07/2023-GST
The source map above is limited to citations actually extracted from the official Circular 216/10/2024-GST PDF. Where the transaction also touches another charging section, exemption entry, return rule or limitation provision, document that separate source before filing or advising.
Paragraph-wise decode
| Para | Issue dealt with in the circular |
|---|---|
| 2 | In order to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods & Services Tax Act, 2017 (herein after referred to as the “CGST Act”), hereby clarifies the following issues as below. |
| 3 | Clarification regarding GST liability as well as liability to reverse input tax credit in respect of cases where goods as such or the parts are replaced under warranty: |
| 3.1 | Table in Para 2 of Circular No. 195/07/2023 -GST dated 17.07.2023 clarifies regarding GST liability as well as liability to reverse ITC , only in cases involving replacement of 'parts' and not if goods as such are replaced under warranty. Request has been made to also issue a clarification in respect of cases where the goods as such are replaced under warranty. |
| 3.2 | In cases where warranty is provided by the manufacturer/ suppliers to the customers in respect of any goods, and if any defect is detected in the said goods during the warranty period, the manufacturer may be required to replace either one or more parts or the goods as such, depending upon the extent of damage/ defect noticed in the said goods. However, Table in Para 2 of the said circular only clarifies in respect of the... |
| 3.3 | Accordingly, wherever, ‘any part,’ ‘parts’ and ‘part(s)’ has been mentioned in Para 2 of Circular No. 195/07/2023-GST dated 17.07. 2023, the same may be read as ‘goods or its parts, as the case may be’. |
Use these paragraph cues to locate the operative part quickly, then read the full official PDF for conditions, exceptions, examples, effective dates and past-period regularisation language.
Workflow
- Identify issue.
Record the taxpayer, supply, return period, order or refund event covered by Circular 216/10/2024-GST. - Map source.
Open the circular PDF with the Act, Rule and notification entries listed above. - Compile proof.
Tax invoice, e-way or delivery proof, books, GSTR-2A or GSTR-2B support, reversal/re-availment entries and board or contract notes. - Close filing.
Use the portal or officer channel that matches the event date and keep the acknowledgement with the source PDF.
Forms and downloadable source
Circular 216/10/2024-GST does not prescribe a separate static form PDF in its extracted source text. The operative document for this page is the circular PDF and the applicable Act, Rule, notification or portal process.
Do not use a form title by memory alone. Confirm the live portal, the rule that prescribes the form, historical return period and any officer instruction before upload or reply.
Highlighted advisory points
Scope
Circular 216/10/2024-GST should be confined to clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023; nearby issues require their own source check.
Evidence
Keep the official PDF, transaction documents and portal record together so a reviewer can reproduce the conclusion.
Version
For historical periods, use the law and portal version applicable to the event, not merely the current screen label.
Exam and advisory case study
In an exam answer, state the ITC condition, identify the mismatch or special fact, cite the circular's answer, and conclude with the accounting or return consequence. For Circular 216/10/2024-GST, a complete answer names the issue, lists the controlling provisions extracted above, applies the circular's operative answer, and then states what the taxpayer or officer must do in the return, refund, appeal, billing or record file.
Finin2min summary and Q&A
Summary: Circular 216/10/2024-GST is a source-specific GST clarification on clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023. Use the exact official PDF, not a generic circular checklist, and preserve the law/rule/notification map with the working file.
Is the circular itself the full law?
No. It clarifies administration under GST. The Act, Rules, notifications, court orders and facts of the transaction remain necessary.
When is a form PDF needed?
Only when the circular or linked rule actually points to a prescribed form. If the page lists forms, use the form compendium and the current GST portal version.
Can this be applied to another tax period?
Only after checking the effective date, amendment history and any past-period regularisation language in the official circular and related notification.
Primary official sources
CBIC circular metadata | Official CBIC PDF viewer | CBIC circular list | GST Council circulars
This Finin2min page is an educational working note. Official legislation, Gazette instruments, circulars, portal rules, court decisions and the facts of the matter prevail. Obtain professional advice for a live filing, refund, appeal or dispute.