TaxTMI 
TaxTMI 
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
ITC on Electric Bikes
08 Nov 2019 
7 Replies 
13002 Views Asked by
Input tax credit eligibility for imported demo vehicles depends on classification as capital goods and adjustment on supply.
ITC may be claimable for imported electric bikes used for exhibition when the import is in the course of business and the bikes are characterised as demonstrative stock or business inputs; classification as a "motor vehicle" could invoke the statutory exclusion, while administrative rulings treating demo vehicles as capital goods permit ITC subject to utilisation rules and required adjustments on subsequent supply; temporary import with re export also allows customs refund/drawback alternatives. (AI Summary)
ITC may be claimable for imported electric bikes used for exhibition when the import is in the course of business and the bikes are characterised as demonstrative stock or business inputs; classification as a "motor vehicle" could invoke the statutory exclusion, while administrative rulings treating demo vehicles as capital goods permit ITC subject to utilisation rules and required adjustments on subsequent supply; temporary import with re export also allows customs refund/drawback alternatives. (AI Summary)