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X provides 'free' AC repair to customer Y under warranty (no separate consideration; warranty cost was embedded in original sale). Value of the warranty service is:
ARule 30 cost-based
BOpen market value of the repair service
CNil — already included in original sale value
DRule 31 residual
Answer & Solution
Correct answer: C. Nil — already included in original sale value
1. Warranty service rendered under a manufacturer's warranty where no further consideration flows from customer = NOT a separate supply (already taxed in the original sale price).
2. CBIC Circular 195/07/2023-GST confirms this: replacement parts supplied free under warranty is not a separate supply to the customer.
3. Value for GST purposes is therefore nil for the warranty service itself.
_Source: ICAI BoS CA Final Paper 8, Ch 5 "Value of Supply", §Sec 15(1) + warranty principle_
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