TaxTMI 
TaxTMI 
As I am registered dealer under GST Act. and having business of motor vehicles . For demo purpose I issued invoice in the name of firm i.e.self . whether the input credit is available or not . The same is showing in books of account under the hade fixed assests .
Regarding Input Tax Credit
12 Apr 2018 
6 Replies 
2187 Views Asked by
Input tax credit available on demonstration vehicles when used for business, subject to specified use exceptions.
Availability of input tax credit on motor vehicles depends on permitted uses: credit is allowed where the vehicle serves qualifying taxable activities such as onward supply, passenger transport, training, or goods transport. Documentary or procedural lapses (for example issuing an invoice instead of a delivery challan) do not automatically forfeit the substantive right to ITC; taxes paid by bona fide mistake may be rectified by refund or adjustment, and credit may be taken where the demo vehicle is used in furtherance of the dealer's business subject to use-based exceptions and compliance. (AI Summary)
Availability of input tax credit on motor vehicles depends on permitted uses: credit is allowed where the vehicle serves qualifying taxable activities such as onward supply, passenger transport, training, or goods transport. Documentary or procedural lapses (for example issuing an invoice instead of a delivery challan) do not automatically forfeit the substantive right to ITC; taxes paid by bona fide mistake may be rectified by refund or adjustment, and credit may be taken where the demo vehicle is used in furtherance of the dealer's business subject to use-based exceptions and compliance. (AI Summary)