diff --git a/src/azure-cli/azure/cli/command_modules/rdbms/_flexible_server_location_capabilities_util.py b/src/azure-cli/azure/cli/command_modules/rdbms/_flexible_server_location_capabilities_util.py
index ebe33d91bbe..5511d71e473 100644
--- a/src/azure-cli/azure/cli/command_modules/rdbms/_flexible_server_location_capabilities_util.py
+++ b/src/azure-cli/azure/cli/command_modules/rdbms/_flexible_server_location_capabilities_util.py
@@ -10,16 +10,16 @@
 from collections import defaultdict
 
 
-def get_postgres_location_capability_info(cmd, location):
+def get_postgres_location_capability_info(cmd, location, is_offer_restriction_check_required=False):
     list_location_capability_client = cf_postgres_flexible_location_capabilities(cmd.cli_ctx, '_')
     list_location_capability_result = list_location_capability_client.execute(location)
-    return _postgres_parse_list_capability(list_location_capability_result)
+    return _postgres_parse_list_capability(list_location_capability_result, is_offer_restriction_check_required)
 
 
-def get_postgres_server_capability_info(cmd, resource_group, server_name):
+def get_postgres_server_capability_info(cmd, resource_group, server_name, is_offer_restriction_check_required=False):
     list_server_capability_client = cf_postgres_flexible_server_capabilities(cmd.cli_ctx, '_')
     list_server_capability_result = list_server_capability_client.list(resource_group_name=resource_group, server_name=server_name)
-    return _postgres_parse_list_capability(list_server_capability_result)
+    return _postgres_parse_list_capability(list_server_capability_result, is_offer_restriction_check_required)
 
 
 def get_performance_tiers_for_storage(storage_edition, storage_size):
@@ -41,7 +41,8 @@ def get_performance_tiers(storage_edition):
     return performance_tiers
 
 
-def _postgres_parse_list_capability(result):
+# pylint: disable=too-many-locals
+def _postgres_parse_list_capability(result, is_offer_restriction_check_required=False):
     result = _get_list_from_paged_response(result)
 
     if not result:
@@ -54,10 +55,10 @@ def _postgres_parse_list_capability(result):
     geo_backup = [feature for feature in supported_features if feature.name == "GeoBackup"]
     index_tuning = [feature for feature in supported_features if feature.name == "IndexTuning"]
 
-    if restricted == "Enabled":
+    if restricted == "Enabled" and not is_offer_restriction_check_required:
         raise InvalidArgumentValueError("The location is restricted for provisioning of flexible servers. Please try using another region.")
 
-    if restricted != "Disabled":
+    if restricted != "Disabled" and not is_offer_restriction_check_required:
         raise InvalidArgumentValueError("No available SKUs in this location.")
 
     single_az = zone_redundant[0].status != "Enabled" if zone_redundant else True
diff --git a/src/azure-cli/azure/cli/command_modules/rdbms/flexible_server_custom_postgres.py b/src/azure-cli/azure/cli/command_modules/rdbms/flexible_server_custom_postgres.py
index 05c4a828418..128690231a9 100644
--- a/src/azure-cli/azure/cli/command_modules/rdbms/flexible_server_custom_postgres.py
+++ b/src/azure-cli/azure/cli/command_modules/rdbms/flexible_server_custom_postgres.py
@@ -1673,7 +1673,7 @@ def index_tuning_update(cmd, client, resource_group_name, server_name, index_tun
         postgres_source_client = get_postgresql_flexible_management_client(cmd.cli_ctx, subscription)
         source_server_object = postgres_source_client.servers.get(resource_group_name, server_name)
         location = ''.join(source_server_object.location.lower().split())
-        list_location_capability_info = get_postgres_location_capability_info(cmd, location)
+        list_location_capability_info = get_postgres_location_capability_info(cmd, location, is_offer_restriction_check_required=True)
         index_tuning_supported = list_location_capability_info['index_tuning_supported']
         if not index_tuning_supported:
             raise CLIError("Index tuning is not supported for the server.")