ITC on Electric Bikes

[Adarsh Gupta]

Hi,

Whether ITC is eligible to be claimed under CGST Act 2017 for import of two wheeler Electric Bikes in India to be used for exhibition purpose?

Regards,

ADARSH GUPTA

AI Summary

Eligibility of ITC on Imported Electric Bikes for Exhibitions Under CGST Act 2017 Clarified; Section 17(5) Discussed A query was raised about the eligibility of claiming Input Tax Credit (ITC) under the CGST Act 2017 for importing electric bikes for exhibition purposes in India. Respondents generally agreed that ITC is permissible if the import is for business purposes, similar to demo cars. However, if the bikes are treated as assets, credit might be denied. It was clarified that electric bikes do not qualify as motor vehicles under section 17(5) of the Act. The discussion referenced a Maharashtra AAR ruling allowing ITC on demo cars, suggesting a similar approach could apply to electric bikes.